South African Yachties: What You Need to Know About Paying Tax
THIS IS NOT A DRILL- If you’re a South African working on a yacht or passenger ship overseas, you still need to pay attention to your tax responsibilities back home.
Dear readers,
I sound like a broken record but since I launched the new coaching program - I can’t help but notice HOW FEW SAFFA YACHTIES UNDERSTAND our tax situations. For this reason - I’ve partnered up with “The Tax Ladies” to shed some light on this topic.
(Disclaimer: I am not a licensed financial advisor nor am I a tax practitioner. Do your own research and ensure you consult a tax professional if need be.)
Do I Have to Register for Tax with SARS even if I work abroad on a yacht?
Yes — if you’re still considered a South African tax resident, SARS (the South African Revenue Service) expects you to pay tax on all your income, no matter where in the world you earn it. Even if you’re not registered with SARS yet, that doesn’t mean you’re off the hook.
Is There a Special Tax Break for Seafarers or Yachties?
Not automatically — but yes, there are possible tax exemptions. Since 2020, SARS tightened the rules for South Africans working abroad, including seafarers. However, there are three main tax exemptions you might qualify for, depending on your situation.
Do I Need a Tax Number?
Yes, absolutely — especially if:
You’re still a South African tax resident.
You have South African bank accounts, property, or other income.
You want to apply for tax relief properly.
You want to buy property in South Africa (a tax number is required).
SARS is using smart systems and international agreements to track down undeclared income — so don’t assume you’re under the radar just because you’re offshore.
In Summary:
If you’re a South African tax resident, you’re taxed on worldwide income.
If you’re not a tax resident, you’re only taxed on South African income.
You need a tax number either way.
What Are the Tax Rules for Yachties and Seafarers?
Your tax depends on several factors — including the type of vessel, how long you’re away from SA, and whether your work qualifies under one of the three tax exemptions.
In order to qualify for this foreign income exemption, the following requirements must be met:
There must be an employer-employee relationship (an employment contract signed
by both the employer and employee). It is critical for yachties to ensure that they
receive and save all employment contracts whilst working abroad as SARS will
require this as supporting documentation.
It is necessary to have received compensation for the services provided.
The taxpayer must be outside of South Africa for a period / periods exceeding 183 days in total during any 12-month period, of which 60 full days must be continuous.
Case Studies:
Example 1:
Sarah was based in Ford Lauderdale Florida, and secured a position on a charter yacht as a Stewardess for 7 months. Her contract commenced on 1 August 2024 and ended 28 February 2025.
She received a salary of $4,000 per month for the duration of her contract. She returned to South Africa on 1 March 2025 to honour her visa expiry date whilst seeking further employment abroad. She is considered a SA tax resident liable to declare her worldwide earnings to SARS.
Sarah qualifies to claim the Section 10(1)(o)(i)(aa) (first seafarers’) exemption working on a charter/commercial yacht and she has been outside the borders of the Republic for more than 183 days (longer than 6 months and 60 continuous days). Her worldwide income will have to be declared to SARS, $4000 x 7 months = $28,000. The foreign currency must be converted to ZAR value.
$28,000 converted at the SARS average assumed exchange rate R18.21 = R509 880 to be declared to SARS and the full exemption can be claimed, resulting in a zero-tax liability as she qualifies for the Section 10(1)(o)(i)(aa) exemption.
Sarah must submit her first and second provisional income tax returns in August 2024 and February 2025, as well as her annual income tax return to SARS once the tax filing season opens for submission from 15 July 2025.
Example 2:
Peter completed his deckhand courses in South Africa in June 2024 and received a contract from a Captain in Mallorca, Spain as a deckhand on a private yacht (not transporting passengers for a fee) for a period of 5 months. His contract commenced on 1 August 2024 and ended on 31 December 2024. He was earning an income of 5,000 Euro per month for the duration of his contract.
He returned to South Africa on 1 January 2025 after his contract ended. Peter is considered a SA tax resident liable to declare his worldwide earnings to SARS.
He does not meet the criteria of the first seafarer’s exemption or the Section 10(1)(o)(ii) (general expat) exemption as he has not been outside of the borders of the Republic for more than 183 days (longer than 6 months and 60 continuous days). In this case he does not meet the requirements and is fully liable for tax on his foreign earnings.
5,000 Euros x 5 months = 25,000 Euros. The foreign currency must be converted to ZAR value.
20,000 Euros converted at the SARS average exchange rate R20.2372 = R505 930 are to be declared to SARS and fully taxed at the marginal tax tables (31% tax = R102 110).
Peter must submit his first and second provisional income tax returns in August 2024 (R51 055) and February 2025 (R51 055), as well as his annual income tax return to SARS once the filing season opens for submission from 15 July 2025.
Example 3:
John is a seasoned seafarer and is a South African citizen. He received a contract as First Mate on a private yacht in Florida for a 12 month period from 1 March 2024 to 28 February 2025. He received a monthly salary of $10 000 for the duration of his contract.
He returned to South Africa on 1 March 2025 after his contract ended. John is considered a SA tax resident liable to declare his worldwide earnings to SARS.
John qualifies for the Section 10(1)(o)(ii) exemption as he has been outside of the borders of the Republic for more than 183 days (longer than 6 months and 60 continuous days). In this case, he meets the requirements, but his income exceeds the R1.25 million exemption.
$10 000 x 12 months = $120 000. The foreign currency must be converted to ZAR value. $120 000 converted at the SARS average exchange rate 18.21 = R2 185 200 are to be declared to SARS and fully taxed at the marginal tax tables. He will declare a taxable income of R935 200 and he will pay 41% tax (R265 716). This is an effective tax rate of 12.16%. John must submit his first and second provisional income tax returns in August 2024 (R132 858) and February 2025 (R132 858), as well as his annual income tax return to SARS once the filing season opens for submission from 15 July 2025.
Get in Touch
The Tax Lady can help you clarify your tax status with SARS in South Africa, assist you with all necessary submissions to ensure you are not unfairly taxed and ensure that you are up-to-date and fully compliant.
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