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Paul says: 11 November 2016 at 18:50 I worked in RSA as a full time employee from 1 March 2015 until 30 September 2015. During this time, I earned R660 000. During this time, I was out of the country for 60 days, for business. From 1 October 2015 to 29 February 2016, I worked in the UK as a full time employee of a UK organisation. During this time, I earned R600 000 (in GBP). During this time, I was out of the country for 126 days. During the full tax year, I spent 186 days outside of South Africa, of which 60 were consecutive, which means that I qualify for the exempt income provision (sec10(1)(o)(ii)). 1. My understanding of S10(1)(o)(ii) is that I should calculate my Gross Income (the two values combined), and apply the ratio of days out of the country to it (e. G. 186 / 366 * R1 260 000 = R640 327) in order to determine the exempt income. Is this a correct interpretation? 2. How would I file this scenario on my Tax Return / ITR12? |
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TaxTim says: 14 November 2016 at 11:57 Please read our blog and work through the examples on Foreign Employment Income - this should hopefully clarify your queries. The exempt income provision only applies to foreign income earned while working for a foreign employer in terms of an employment contact. Therefore, it won't apply to the income earned in SA under a SA employment contract. |
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