- Overview: South Africa
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in South Africa (RSA)
Getting your business up-and-running in South Africa (RSA) can be challenging, especially if you do not speak the native language. Establishing your own business entity in South Africa is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in South Africa, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in South Africa, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in South Africa
Navigating the South African legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native South African speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in South Africa without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in South Africa. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in South Africa
Employment related taxes
Residence (Local & Expat). South African residents are taxed on their worldwide income. Credit is granted in South Africa for foreign taxes paid. Non-residents are taxed on their South African sourced income. The same rates of tax are applicable to both residents and non-residents.
Progressive tax rates apply for individuals.
There are no local income taxes in South Africa.
Social security contributions. No significant social security taxes are levied. Employees are obligated to make contributions to an unemployment insurance fund. The employee’s contribution is withheld by the employer. Employee’s contributions are limited.
Payroll Cycle in South Africa (RSA)
An employer must pay remuneration not later than seven days after:
- The completion of the period for which the remuneration is payable.
- The termination of the contract of employment.
Subsection does not apply to any pension or provident fund payment to an employee that is made in terms of the rules of the fund.
Non-payroll taxes in South Africa
An individual trader is liable for value-added tax (VAT) on the same basis as a company. VAT is an indirect tax, which is largely directed at the domestic consumption of goods and services and at goods imported into South Africa. The tax is designed to be paid mainly by the ultimate consumer or purchaser in South Africa. Goods and services are either exempt from VAT or are levied at two rates, namely a standard rate and a zero rate. Very few business transactions carried out in South Africa are not subject to VAT. The tax is collected by businesses that are registered as vendors with the South African Revenue Service (SARS) on all taxable supplies throughout the production and distribution chain. Sales or supplies by non-vendors are not subject to VAT.
Zero-rated supplies. The VAT Act contains a list of supplies of goods or services that are taxed at the zero rate. The list primarily refers to exports and international transport items. However, other specified goods utilised for farming purposes, the sale of an enterprise as a going concern, certain basic foodstuffs, fuel subject to the fuel levy, and deemed supplies by welfare organisations are also zero-rated.
A zero-rated supply made by a vendor is subject to VAT but at a rate of 0%. Under a zero-rated supply, a vendor does not charge VAT on the consideration for the supply and obtains a refund or credit for the VAT paid on taxable supplies utilised in the making of the zero-rated supplies.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in South Africa
Compensating your local and expat workforce in South Africa and closely adhering to South African taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with South African labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in South Africa by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by South African laws. To get the latest updates on taxation in South Africa and in 190 countries worldwide, contact Acumen’s team of global employment experts.