PAYE payable on forgein commission?

West · 24-Feb-09, 10:22 AM

I have a very technical question

The company I work for is part of an international group, HQ in Amsterdam, our SA company basiccaly does the labour for the HQ.

One of our Salesmen (Dutchman, employed by the SA company) received commission on sales that he did for the HQ company, this commission income was paid into his forgein bank account in euros by the our HQ company.

Is there any PAYE payable on this commission, my director advised me that there is no taxes payable by the salesmen because he is a temporary SA resident and for the 1st 5 years all his forgein income isn't taxable in SA, is this so?

West · 26-Feb-09, 11:45 AM

Please, does any one have any advise for me???

Dave A · 26-Feb-09, 01:18 PM

Where is your salesman currently paying income tax?

West · 26-Feb-09, 03:51 PM

Hi Dave, thanks for the reply

He earns his salary in SA and he is paying PAYE in SA.

Morticia · 27-Feb-09, 08:46 AM

On the assumption that the sale took place outside SA and that his services relating to the sale on which he earned that commission were rendered physically outside SA, yes, the income is not taxable in SA (split contracts applicable to expats).

Morticia · 27-Feb-09, 08:50 AM

Oh, and yes, for the first 5 years (provided he does not apply for permanent residency/citizenship in SA), only income from SA source is taxable in SA. NOTE - the deciding factor is the source of the income/where the services are rendered.

24-Feb-09, 10:22 AM	#1
West New Member Join Date: Feb 2009 Location: Cape Town Posts: 3 Thanks: 1 Thanked 0 Times in 0 Posts Rep Power: 0	PAYE payable on forgein commission? I have a very technical question The company I work for is part of an international group, HQ in Amsterdam, our SA company basiccaly does the labour for the HQ. One of our Salesmen (Dutchman, employed by the SA company) received commission on sales that he did for the HQ company, this commission income was paid into his forgein bank account in euros by the our HQ company. Is there any PAYE payable on this commission, my director advised me that there is no taxes payable by the salesmen because he is a temporary SA resident and for the 1st 5 years all his forgein income isn't taxable in SA, is this so?

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26-Feb-09, 11:45 AM	#2
West New Member Join Date: Feb 2009 Location: Cape Town Posts: 3 Thanks: 1 Thanked 0 Times in 0 Posts Rep Power: 0	Please, does any one have any advise for me???

26-Feb-09, 01:18 PM	#3
Dave A Site Caretaker Join Date: May 2006 Location: Durban, South Africa Posts: 10,171 Thanks: 978 Thanked 696 Times in 609 Posts Rep Power: 28	Where is your salesman currently paying income tax?

26-Feb-09, 03:51 PM	#4
West New Member Join Date: Feb 2009 Location: Cape Town Posts: 3 Thanks: 1 Thanked 0 Times in 0 Posts Rep Power: 0	Hi Dave, thanks for the reply He earns his salary in SA and he is paying PAYE in SA.

27-Feb-09, 08:46 AM	#5
Morticia Silver Member Join Date: Jun 2008 Location: JHB Posts: 271 Thanks: 73 Thanked 76 Times in 56 Posts Rep Power: 3	On the assumption that the sale took place outside SA and that his services relating to the sale on which he earned that commission were rendered physically outside SA, yes, the income is not taxable in SA (split contracts applicable to expats).

27-Feb-09, 08:50 AM	#6
Morticia Silver Member Join Date: Jun 2008 Location: JHB Posts: 271 Thanks: 73 Thanked 76 Times in 56 Posts Rep Power: 3	Oh, and yes, for the first 5 years (provided he does not apply for permanent residency/citizenship in SA), only income from SA source is taxable in SA. NOTE - the deciding factor is the source of the income/where the services are rendered.

PAYE payable on forgein commission?

I have a very technical question The company I work for is part of an international group, HQ in Amsterdam, our SA company basiccaly does the labour...