If you’re South African and earning an income overseas, there are a few points you’ll need to remember about income tax in South Africa. Even if you've packed up your things and moved abroad, if you're recognised as a tax resident in South Africa you may still have to pay taxes there. 

This article discusses everything you need to know about what double tax treaties are and the different double tax treaties South Africa has with other countries. 

What is a Double Tax Treaty?

A Double Tax Treaty (DTT), also known as a Double Tax Agreement (DTA), is a legal agreement between two countries which clearly states where a person's tax liability resides. 

As a South African resident earning an income from a foreign country, you may end up in a situation where you are paying foreign taxes and South African taxes. 

Nobody wants to pay taxes twice, so it’s worthwhile to check your tax liability with the South African Revenue Service (SARS) to make sure you're filing your income tax return correctly. 

Double taxation agreements stop a taxpayer from paying excessive taxes for South Africa and the related country specified in the contract. 

Amendments that took effect on 1 March 2020 state that the tax-exempt status for South African tax residents earning an income from abroad would only apply to the first R1.25 million in revenue. After that, they will have to pay income tax on their overseas earnings. 

How Many Double Tax Treaties does South Africa have?

In contrast to every other African country, South Africa has the largest network of income tax treaties. South Africa has established 79 tax treaties in the following locations: 

• 23 African countries 
• 28 European countries 
• 13 Pacific and Asian countries 
• 6 with South and North America 
• 9 in the Middle East 

African Country Double Tax Treaties 

South Africa’s tax treaty network is spread throughout Africa in Southern African Development Community (SADC) countries, North African countries, West African countries, and East African countries. Their main focus is to continue expanding and improving the treaty network within Africa. 

South Africa has some agreements, including the Mauritius South Africa tax treaty, the Congo tax treaty, and the Namibia tax treaty. Here’s a full list of their current double tax treaties in Africa: 

European Country Double Tax Treaties 

South Africa has formed double tax treaties with 28 European countries. For South Africa, the United Kingdom (UK) tax treaty was especially important since they were one of the largest trading partners to South Africa. 

If you’re a South African tax resident earning income in the UK, you can learn more about your tax situation on the UK government website. 

Other countries in Europe that have a tax treaty with South Africa include the following: 

Asian and Pacific Country Double Tax Treaties 

Income tax treaties are available to 13 countries in Asia and the Asia-Pacific region. To confirm whether or not the country you work with belongs to this region, here’s a list of the countries that have a double tax treaty with South Africa: 

North and South America Double Tax Treaties 

Only six American countries have double tax treaties with South Africa. The South African US tax treaty was terminated in 1987 due to an anti-apartheid Act created in 1986. However, the double tax treaty between the US and South Africa was revived in 1997.

Does Canada have a double tax treaty with South Africa? Yes, the Canada-South Africa tax treaty has been in effect since 1997. Here’s a full list of the tax treaties between South Africa and North and South America:

Middle East Double Tax Treaties 

Out of the Middle East’s 18 countries, South Africa only has treaties with nine of its countries. These include the following:

That concludes all the countries that have double tax treaties with South Africa. You can learn more about this topic by reading this small business tax guide and this article on how to file your own business tax. 

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Disclaimer: This page is provided for general information purposes only and does not constitute accounting, tax, business, or legal advice. You should always consult your own advisors for advice relating to your business or situation. Always consult SARS directly as information changes from time to time.