We have recently employed a swedish national. He is based in Sweden, and will never need to set foot on SA soil for work related purposes. My query is around to handle him on the payroll. I am concerned that my EMP501 submissions might be rejected because he does not have a valid SA tax number (or for any other reason). I have contacted SARS for clarification on how to treat his payment, but they were unable to respond, and have said that they will respond in 21 days as the query is complex. Our payroll company has recommended that I do not include him on the payroll, and I am in agreement with them as the consequences of a rejected EMP501 submission would be detrimental to our business. Are you able to advise on the best way forward?
Hi, I agree with not including him o the SA payroll but he will have to pay tax and comply with the legislation in the country where he works / earns his income from. You could also read the residency based tax test but this employee fails this test and must be taxed in Sweden.
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