Abstract
This dissertation critically examines the legal and regulatory framework governing
employees' tax (Pay-As You-Earn ((PAYE)), with a particular focus on the PAYE
obligations of non-resident employers operating in South Africa.
The study explores the challenges of enforcing compliance with PAYE, especially
considering the increasing prevalence of remote work, which has reshaped global
employment dynamics. It evaluates the current tax administration system, including
the South African Revenue Service's (SARS) proposals, and highlights the
challenges in enforcing PAYE obligations, particularly for non-resident employers
without a permanent establishment (PE) in South Africa.
The dissertation addresses practical obstacles such as registration requirements, the
role of representative employers, and the enforcement of tax collection. The study
further proposes solutions such as utilizing the Voluntary Disclosure Programme
(VDP) to mitigate penalties, establishing payroll companies as Employers of Record
(EOR), and enhancing international collaboration through PAYE-enabling treaties.
Ultimately, the research offers a comprehensive analysis of the complexities
surrounding non-resident PAYE compliance, aiming to contribute to a more efficient
and effective tax administration system in South Africa.