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s10(1)(o)(ii) and once off-contracts



I will be fulfilling a contract overseas for more than 183 days and more than 60 continuous days. I meet these requirements of s10(1)(o)(ii), but I am unsure if the section applies to once-off contracts with an overseas company. The contract will last for more than 10 months however. Does this make me an independent contractor?

TaxTim TaxTim says:
17 July 2013 at 17:17

The income that you earn from the overseas company should be exempt from income tax. The section applies to any work done outside South Africa for longer than 183 days and more 60 continuous days outside of South Africa, it does not matter if the work was done on behalf of your current employer in South Africa or if you are an idependant contractor.

Elizabeth says:
18 July 2013 at 17:37

Thank you for your reply. Just to clarify, is being an independent contractor the same as being employed? The section refers to income received from employment. Is there an employee employer relationship as an independent contractor?

TaxTim TaxTim says:
23 July 2013 at 10:10

Do you only work for the one company and do you have a contract with that company?

Elizabeth says:
23 July 2013 at 14:19

I'm working as a medical professional and have a contract overseas for a few months. I do not only work for that company however. I am self employed but I have a contract for this specific overseas job?

TaxTim TaxTim says:
23 July 2013 at 17:09

If you meet the number of days criterion and you have a contract in place then you will have that income earned while out of SA exempt even if you are self employed.

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