For employers of globally-mobile employees there is always a great deal of interest in budget measures and proposals in respect of future policy as they can have a direct impact on the costs of assignments, payroll withholding, hypothetical tax deductions, etc.
Budget 2022 introduces a number of welcome measures which are likely to benefit both office-holders/employees and employers. However, asset reporting is garnering increased scrutiny and individual taxpayers, and their tax service providers, should be diligent about compliance in this area.
The specific impact of the budget’s measures will depend on each taxpayer’s particular set of circumstances. However, in most instances, we expect that an employee’s South African tax burden should remain relatively stable as a result of these measures.
It is essential to get in front of the changes described in this newsletter and to communicate quickly and clearly with key stakeholders, so that they can properly plan, budget, and make necessary adjustments.