Taxes aren't fun. But if you're earning money remotely in South Africa, you need to know the basics. The good news? It's not as complicated as you think.

Here's what you actually need to do.

Do You Need to Declare Foreign Income?

Short answer: yes.

South Africa taxes residents on their worldwide income. Doesn't matter if the money comes from a US company, a UK client, or a platform based in Estonia. If you're a tax resident in SA, you declare it.

The only exception is if you qualify for the foreign employment exemption—but that's for people working outside South Africa for more than 183 days a year. If you're working from home in Cape Town or Joburg, it doesn't apply.

How Much Tax Will You Pay?

Same rates as any other income in South Africa. For 2025/2026:

  • R0 - R237,100: 18%
  • R237,101 - R370,500: R42,678 + 26% above R237,100
  • R370,501 - R512,800: R77,362 + 31% above R370,500
  • And so on...

If you're earning under R95,750 annually (the 2026 tax threshold), you don't pay tax. But you still need to declare it.

When Do You Need to Register for Provisional Tax?

If your freelance/remote income is going to exceed R1 million in a tax year, you need to register for provisional tax with SARS.

What does that mean? You pay estimated tax twice a year—usually end of August and end of February. Think of it as paying tax in advance instead of getting a massive bill when you file your return.

Below R1 million? You just declare on your annual tax return (ITR12). No provisional payments needed.

What About Expenses?

If you're registered as a sole proprietor or freelancer, you can deduct business expenses. Things like:

  • Internet and phone costs (portion used for work)
  • Software subscriptions
  • Home office expenses (if you have a dedicated workspace)
  • Equipment (laptop, monitor, etc.)
  • Professional fees (accountant, lawyer)

Keep receipts. SARS can ask for proof.

If you're employed full-time by a foreign company (not freelancing), expense deductions are more limited. You can't just deduct your WiFi bill because you work from home.

Exchange Rates and Foreign Currency

Here's where it gets slightly annoying. SARS wants you to declare income in rands, but you're earning in dollars (or euros, or whatever).

The rule: convert using the SARS daily exchange rate for the date you received the payment.

SARS publishes these rates on their website. Keep a record of the exchange rate used for each payment. If SARS queries it later, you'll need proof.

Realistically? Most people use the average rate from their payment provider (Wise, Payoneer, etc.) and SARS rarely challenges it unless it's wildly off.

Do You Need an Accountant?

Depends on how complicated your situation is.

If you're earning under R500k a year from a single client and have minimal expenses, you can probably file yourself using eFiling. It's straightforward.

If you're:

  • Earning over R1 million (provisional tax)
  • Working with multiple clients across different currencies
  • Claiming significant business expenses
  • Running a registered company (Pty Ltd)

Then yeah, get an accountant. Saves you time and reduces the risk of screwing something up.

What Happens If You Don't Declare?

SARS has access to international banking data. If you're receiving regular payments from overseas, they'll eventually know about it.

Penalties for non-compliance can be steep—up to 200% of the unpaid tax plus interest. Not worth the risk.

If you've been earning remotely and haven't declared it yet, file a voluntary disclosure with SARS. You'll still owe the tax, but penalties are way lower if you come forward voluntarily.

Quick Checklist

Here's what you need to do:

  1. Register as a taxpayer with SARS (if you haven't already)
  2. Keep records of all payments received (amounts, dates, exchange rates)
  3. Track expenses if you're claiming deductions
  4. Register for provisional tax if you'll earn over R1 million
  5. File your return annually (deadline is usually late October)

Useful Resources

Bottom Line

Declare your income. Keep records. Pay what you owe.

It's not exciting, but it keeps you out of trouble. And if your remote work income grows to the point where taxes become complicated, hire someone who knows what they're doing.

Focus on earning. Let an accountant worry about the rest.