“10(1) There shall be exempt from normal tax—
(o) any form of remuneration—
(ii) received by or accrued to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance, including any amount referred to in paragraph (i) of the definition of gross income in section 1 or an amount referred to in section 8, 8B or 8C in respect of services rendered outside the Republic by that employee for or on behalf of any employer, if that employee was outside the Republic
(aa) for a period or periods exceeding 183 full days in aggregate during any period of 12 months; and
(bb) for a continuous period exceeding 60 full days during that period of 12 months,
and those services were rendered during that period or periods”
A quick look at the “section 10(1)(o)(ii) exemption” requirements:
- Income received must be derived through foreign employment.
- The taxpayer must be outside of SA for more than 183 days for the year of assessment.
- The taxpayer must be outside of SA for a continuous period exceeding 60 days for that year of assessment.
- Kindly note the exemptions has been amended to exempt only the first R1 million as of March 2020.