TEBA Deferred payment deductions for Lesotho and Mozambique Employees

[Azhar]

Hi all

Has anyone had experience with foreign mine workers from Lesotho and Mozam who are required to pay over a portion of their income to TEBA (a collection agency) who then pays it over to their respective countries governments. A client of mine wants help to set up the deduction on Pastel, but I first wanted to confirm if this is indeed the procedure. According to a letter given by TEBA, Lesotho workers have to pay 30% of Gross Salary and Mozam workers it is 60% of Net Salary. This seems quite high, shouldnt there be a sliding scale and not a flat rate? Something just doesnt seem right. According to the residency rule these employees are residents of SA and should be taxed in SA.

Please see the letter in the link: https://www.dropbox.com/s/6t90s9g8t5...ystem.pdf?dl=0

There is not much info available online when it comes to this. Thoughts?

[Dave A]

I found this insight on TEBA from their website.

Based on that, I'd expect there's a contractual relationship with the emloyer in place already that defines this