Technical article

How Four African Countries Tax a Pension Paid From Abroad

When that pension lands in a bank in Africa, does the local tax office take a share?

By Neil Solomon · 4 min read

Picture a couple named Frank and Linda. Both are 64. Frank has a monthly pension from a job in the United States. They want to know one thing before they look at flats. When that pension lands in a bank in Africa, does the local tax office take a share?

Each country answers in its own way. I read the tax authority pages where I could reach them. Here is what they say.

Tunisia

The Ministry of Finance overview page gives a standard flat deduction of 25% for pensions and life annuities. It then says this rate "est porté à 80%" for pensions and annuities that come from abroad and are transferred to Tunisia. In plain terms, 80% of the pension is taken off before tax, if it is transferred in.

That is the rule as the page states it. It does not show the tax rates that apply to what is left. It also does not say what happens to a pension that is not transferred. That is not on an official page in the sources I could read.

For other foreign income, the same page lists income "qui n'ont pas subi l'impôt dans le pays de la source", meaning income not already taxed where it came from.

South Africa

The SARS guide to taxation says that "a resident's worldwide taxable income is subject to income tax in South Africa." The guide is dated 30 September 2026.

For pensions, SARS has an Interpretation Note (number 104, dated 4 October 2018). My paraphrase: only the part of a foreign pension that relates to work done outside South Africa is exempt. The share is worked out as years of foreign service divided by total years of service. In the note's own example, a person with 18 foreign years out of 27 had ZAR 30,000 of a ZAR 45,000 monthly pension exempt (my arithmetic: two thirds).

For the part that is taxed, the rates for the year ending 28 February 2027 start at 18% on the first ZAR 245,100 and rise to 45% above ZAR 1,878,600 (SARS page updated 17 March 2026). The tax-free threshold is ZAR 99,000 under age 65, ZAR 153,250 from 65 to 74, and ZAR 171,300 at 75 or older.

Mauritius

The Mauritius Revenue Authority has a page on foreign income. It lists "annuity, and pension in respect of past services" among foreign income, and says "The foreign income is taxable in the hand of the resident." My paraphrase: a resident is taxed on income derived in Mauritius or remitted to it.

The MRA overview page says something broader: "A person resident in Mauritius is liable to tax on the worldwide income derived by him." I show both. I do not pick one.

The rate bands on the pages I could read are not given. The exempt income page has a rule for pensions paid to Mauritian citizens who live abroad. It does not cover a retiree from abroad living in Mauritius.

What is left open

• Morocco. The tax authority site refused automated reading on two tries, so I stopped. I have no official figure for a foreign pension in Morocco.
• Tunisia: the rate on what remains after the 80% deduction, and the treatment of a pension that is not transferred.
• Mauritius: the rate bands for residents.
• All four: how a tax treaty with your home country changes any of this. An accountant or lawyer who works with Americans abroad could confirm.