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Thread: Company is registered overseas

  1. #1
    Junior Member
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    Company is registered overseas

    Hi all.

    I went for a job interview and after being explained how the company works I was quite interested on how this will work with the SA taxes etc.

    The company is registered in Dubai but the company is going to open up a branch in Cape Town. It's a company which generates income from their websites so the web designers and accounting function will be in SA, the rest is done overseas. As I understand the income will be generated abroad. The branch in Cape Town will bill the HQ cost + 10% to cover cost.

    So now my questions is:
    1. Does the company pay normal taxes in SA as well, especially VAT because the company will obviously have electricity bills, rent, stationary, so expenses will be generated in SA but not income except the "cost+10%" invoice to HQ.
    2. How does the PAYE, UIF, SDL work on the people's salary who is working and residing in Cape Town?


  2. #2
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    Oct 2009
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    The companies act allows for a foreign company to be registered, it caters for branches.
    However, sometimes the overseas company will register a SA company as a separate entity.
    Questions always revolve around the type of collection process, source and residence.
    Anthony Sterne
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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