Death and taxes, what utter bastards! There’s just no getting around them.
The best we can do is live long and pay as little as we legally can. Seeing as I’m puffing a ciggie as I type, I can’t help on living longer (for that check out my sisterÂChantal Lascaris‘ site.)
But I did learn something recently that I wish I knew a long time ago: if I spend more than half the year out of the country (more than 183 days with at least 60 of them consecutive), I can write off the first R1.25 million in tax, which I’m not ashamed to admit that isÂwayÂmore than all my personal income tax!
There are some caveats and catches, but this is a bit of a game changer in terms of affordability and planning. I thought I’d have to financially emigrate or earn money from foreign employers, but I can get that benefit doing exactly what I’m doing and earning how I earn, just spending more than half the year out of the country and at least 60 days of that unbroken.
I’ve been told not to be marginal and I also implore you to get professional advice on your own particular situation before making any major decisions, but it is 100% legit!
To give an example of the value of this, here’s the SARS tax table for the 2023/24 financial year.
All of these are rand amounts, but keep in mind this is only off your taxable income plus, very importantly,there are tax rebates for different age brackets.
Links: Sars tax tables
| 1 – 237 100 | 18% of taxable income |
| 237 101 – 370 500 | 42 678 + 26% of taxable income above 237 100 |
| 370 501 – 512 800 | 77 362 + 31% of taxable income above 370 500 |
| 512 801 – 673 000 | 121 475 + 36% of taxable income above 512 800 |
| 673 001 – 857 900 | 179 147 + 39% of taxable income above 673 000 |
| 857 901 – 1 817 000 | 251 258 + 41% of taxable income above 857 900 |
| 1 817 001 and above | 644 489 + 45% of taxable income above 1 817 000 |
Let’s work with our “average Safa” who earns R25K per month and is under 65 going into 2024. He gets a R17,235 tax rebate automatically. For simplicity, we’ll assume he doesn’t have anything tax deducible like medical aid or an RA. (Obviously you’re not average, so I’ve given higher and lower estimates beneath too)
This means:
- Annual earning: 25K x 12 = R300K
-
- Tax: R42,678 + 26% of income above R237,000 (R300K – R237K = R63K)
- = R42,678 + R39,060
- = R81,738
- = R81,738 – R17,235 .(Less rebate for under 65 )
- = R64,503 tax due
That’s certainly enough for a few flights and accommodation costs, even if you reduce the hell out of that figure with deductibles and a good accountant.
Annual tax after rebates:
- Annual tax on R15K per month is R15,165
- Annual tax on R20K per month is R26,196.74
- Annual tax on R25K per month is R64,503
 And etc etc …Â
 NOTE: I need to check this maths …