Under which of the following circumstances may an employer lawfully refrain from withholding employees’ tax in terms of the Fourth Schedule to the Income Tax Act, taking into account both statutory provisions and administrative practice by SARS?

Question

Accepted Answer

When SARS has issued a directive in terms of paragraph 11 or an exemption certificate authorizing non-withholding.

Answer

When the employer has applied for, but not yet received, a SARS directive confirming that no employees’ tax is to be withheld.

Answer

When the remuneration relates to services rendered outside South Africa and the employer is a non-resident without a South African permanent establishment.

Answer

When remuneration constitutes foreign employment income that the employee reasonably expects to be exempt under section 10(1)(o)(ii).

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Under which of the following circumstances may an employer lawfully refrain from...

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