I get paid through a PayPal account, do I pay tax?

PayPal. (Duncan Alfreds, Fin24)
PayPal. (Duncan Alfreds, Fin24)

Cape Town - To help make the filing process as seamless as possible Fin24 has joined forces with the SA Institute of Tax Professionals (SAIT), to answer users' tax questions as far as possible.

User question: I started working for a internet company that is located in the United States. I am receiving payment through my PayPal account. Will I be paying tax? Do I need to register for tax?

Piet Nel, SA Institute of Tax Professionals responds:

We accept that you are ordinarily resident in the RSA. As such you will receive as gross income all amounts received in respect of services rendered. 

You will therefore have to register as a taxpayer in the RSA and will have to pay tax if the taxable income exceeds the tax threshold. 

We assumed that the services will have been rendered in the RSA (i.e. not in the USA). If the services are rendered outside the RSA for a period in excess of 183 days in a 12 month period and where the absence from the RSA includes a continuous absence of at least 60 days an exemption may apply. 

* Have a question? Send it to us and we will find an expert to answer.

PLEASE NOTE: The important deadline dates in the 2015 tax season are:

September 30 2015: Manual/postal submissions
November 27 2015: At a SARS branch (non-provisional)
November 27 2015: eFiling (non-provisional)
January 29 2016: Provisional taxpayers via eFiling

ALSO SEE previous tax questions from users:

Can interns claim for travel expenses?

Home care and medical rebates

What to do when tax docs burn

Expat receiving pension from SA: Do I pay tax?

What are the limits on claiming travel expenses?

Can I claim for using my own car for work?

Temp teaching for 6 months, must she pay tax?

Working in Saudi, do I also pay tax in SA?

Can I claim for travel expenses?

Tax filing: No financial records yet, what now?

Filing returns for an education trust

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.


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