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V2985-15 8 October 2015 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

The taxation of workers posted to South Africa depends on their tax residence and the duration of the posting

A Spanish company inquires where its workers posted to South Africa for assembly work must be taxed. The DGT explains that it will depend on whether they maintain tax residence in Spain and whether the requirements of the Double Taxation Convention are met.

The question raised

Question posed: Place of taxation of workers if the duration of the assembly contract is 4 months, or if it exceeds 6 months, or if a workshop is opened in South Africa.

The DGT's ruling

If the worker is a resident in Spain, they will be taxed only in Spain if they remain in South Africa for less than 183 days, the remuneration is paid by the Spanish company, and it is not borne by a permanent establishment there. If the posting exceeds 183 days or the salaries are borne by a permanent establishment in South Africa, taxation will be shared between both countries. If the worker is not a resident in Spain, they will not be taxed in Spain on income obtained abroad.

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