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A Fin24 user who is working abroad wants to know if he can claim tax free status in South Africa. He writes:
I am a consultant working overseas through a British agency with whom I have a contract. As I work out of the country for more than 183 days of which 60 are consecutive, can I claim tax free status in South Africa?
Marc Sevitz of TaxTim responds:
Based on the information given, it appears that you work primarily out of South Africa and for more than 183 days with 60 being consecutive resulting in the source of your income being outside of South Africa.
The income earned would qualify as exempt under s10(1)(o)(ii) of the Tax Act and therefore no tax would be payable in South Africa.
Should tax ever be payable in SA and you pay tax in the UK, you could use this to offset taxes owing.
Please note that the exemption only applies to employment income, not any South African income you may have from rentals or similar.
ALSO READ: Tax on earnings while working abroad
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