Business tax in South Africa

Hi all,

I’ve recently registered a business in South Africa so I can provide remote consulting services to clients globally (at the moment I have clients in France and Canada).

What is the best way to pay (or not pay) taxes on this income?

Many thanks in advance.

Jeff, on the facts provided, you will be liable to pay income tax in SA because the taxpayer entity (your business, assuming it is owned by a company)) is domiciled in SA. SA taxes SA residents (including businesses operated by companies domiciled in SA), on their worldwide income. Have you considered incorporating an IBC (International business corporation) in a tax-neural country and invoicing customers from that entity? Obviously you will need a bank account for that entity, ideally also off-shore, and funds entering SA may be subject to SA tax if you are receiving it as income.

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David, thanks very much for your input. I have not considered (or even heard of) an IBC. As far as taxes go, especially business taxes, I don’t have much knowledge or experience.
Your solution does sound interesting. Is it all legal? If so, where do I start?
I’m putting my feelers out to find a business accountant to help me with this but any further recommendations would be greatly appreciated. I’d love to know how people in this community are doing it.