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Tax Talk

Tax Talk

Author: Natalie Wocke
Date: 2014-11-28
EMPLOYMENT OUTSIDE THE RSA - IS THE INCOME TAXABLE HERE?

As a general rule, all people who are ordinarily resident in the RSA, which is a much wider concept that merely whether you have an RSA ID or Passport, must declare their worldwide receipts and accruals in their South African income tax returns.


These receipts and accruals must be declared, whether they are taxable or not, under the appropriate sections of the tax return. The available categories cater not only for taxable income, but also for exempt income, and income which the taxpayer considers to be not taxable. It is thus imperative that all income, regardless of the source, is declared.


The Income Tax act 58 of 1962, section 10, deals with income that is exempt from tax. Section 10(1)(o)(ii) exempts any remuneration received/ accrued to a person, in various specified forms relating to employment where the person who rendered the service was physically out the Republic for-

  • A period greater than 183 full days in total during ANY 12 month period
  • The period of absence must include a continuous period of more than 60 full days, during that 12 month period.
  • The services must have been rendered during that period.
  • The services must have been rendered for/on behalf of an employer.

The section is specific about which days may be counted or excluded in the calculation of the number of days. The section further limits application in certain circumstances.


To determine if your income from an employer, earned while rendering services outside the RSA, qualify for this exemption, make an appointment at your nearest branch of Roberts and Chaplin, in Umhlali (032) 947 1010 and Ballito (032) 586 0387, for your convenience.