Companies trading in international markets and assigning their employees to these global positions has become a daily occurrence, also in the lives of many South Africans. The taxation planning around these assignments can become a complex matter which can either be beneficial to the employee or result in surprising tax liability. Although many articles have been written on the taxation effect on South African employees working abroad, little research has been performed combining not only the South African legislation, but also taking the effect of double taxation agreements and the legislation of other countries into consideration. This study extends on these prior articles by analysing the taxation of an individual from a South African perspective in combination with double taxation agreements and legislation of the United States of America, Australia and Saudi Arabia. The aim of this study is to create a structure for planning an employee’s taxation liability when sent on a secondment assignment and to provide all the relevant aspects that should be taken into consideration to determine the employee’s final tax liability. This study discusses the South African legislation relevant to employment income, determining the employee’s resident status, the relevant double taxation agreements articles and three countries: USA, Australia and Saudi Arabia, double taxation agreements and legislation on non-residents. The study concludes by summarising the taxation effect on a South African employee working in one of these countries. AFRIKAANS : Maatskappye wat in internasionale markte handeldryf en hulle werknemers in buitelandse poste aanstel het ʼn alledaagse deel van baie Suid-Afrikaners se lewens geword. Die belastingbeplanning rondom hierdie opdragte kan ‘n komplekse berekening word wat of gunstig vir die werknemer kan wees of in ‘n onverwagse belastingimplikasie kan ontaard. Alhoewel daar al baie artikels geskryf is ten opsigte van die belastingeffek vir Suid-Afrikaanse werknemers wat oorsee werk, is daar min navorsing gedoen wat die Suid-Afrikaanse wetgewing met die effek van dubbelbelastingooreenkomste asook die belastingwetgewing van ander lande kombineer. Hierdie studie is ‘n uitbreiding van hierdie artikels deurdat dit die belastingeffek van Suid-Afrikaanse individue analiseer deur Suid-Afrikaanse wetgewing te kombineer met dubbelbelastingooreenkomste en belastingwetgewing van die Verenigde State van Amerika, Australië en Saoedi-Arabië. Die doel van die studie is om ‘n struktuur daar te stel om ‘n individu se belastingaanspreeklikheid te beplan wanneer hy in ‘n internasionale pos aangestel word en om al die relevante aspekte in ag te neem om sy finale belastingaanspreeklikheid te bepaal. Die studie bespreek Suid-Afrikaanse wetgewing rakende werknemers inkomste, die bepaling van die individu se inwoner-status, die relevante dubbel belasting-ooreenkomste artikels en drie lande: VSA, Australië en Saoedi-Arabië, se dubbel belasting-ooreenkomste en wetgewing op nie-inwoners. Die studie kom tot die gevolgtrekking deur die belasting effek van ‘n Suid-Afrikaanse werknemer wat in een van die bogenoemde lande werk, op te som. Copyright 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Van Wyk, TC 2011, Critical analysis of the taxation of South African employees working abroad, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03092012-125019 / > F12/4/169/gm / Dissertation (MCom)--University of Pretoria, 2012. / Taxation / unrestricted

This diploma thesis describes the topic of personal income taxation in the Czech Republic compared to the United States of America and on the case studies it compares the tax burden of the family with two children earning average income from employment in the Czech Republic and in the United States of America. The aim is to prove that the results comply with the OECD statistics saying that the tax burden difference between those two states is approximately the same. The fractional aim is to examine if the tax burden for the same family with the above-average employment income in the United States is much higher that it can be one of the motives why people enter or leave different labour markets. The second case study focuses on the differences in the taxation of the different tax return categories of the taxpayers and confirms the theory that the average benefit of 450 USD per year appears with taxpayers filing the married filing jointly tax return. The thesis also describes the international taxation basics with the Double tax treaty and the concepts of tax residence and taxation principles such as tax equity and efficiency.

The Master’s thesis focuses on taxation of employment income of the resident of the Czech Republic who also receives employment income from Canada. The thesis explains elementary principles and concepts related to income taxation of natural persons in the Czech Republic and Canada. The relevant articles of the Convention for the avoidance of double taxation are analysed. Based on the theoretical part of the thesis, a methodology for determination of a model taxpayer’s tax liability is designed with regard to available means of tax optimization.