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What is S10(1)(o)(ii) income?

It is foreign income which  may not be subject to tax if you:

  • Have a formal employment contract with a foreign employer,
  • Are a South African tax resident,
  • Spend at least 183 days  of a consecutive 12-month period outside of SA rendering services to your foreign employer, and
  • At least 60 of these days are continuous or unbroken.

Note, the 183 days includes all calendar days i.e weekends, public holidays, annual leave etc


To calculate how much income is exempt, you need to apply the following formula:

(Working days outside of SA for the specific period / by the total work days for the period) x the remuneration received for the period.

For the above formula, it’s important to note that work days only refer to days where services are rendered, and therefore excludes weekends, public holidays or leave taken.  Furthermore, the period refers to the full period during a year of assessment over which a taxpayer is required to render services outside of SA.

For example:


Assume the taxpayer has passed the 183/60 day test and earned R500,000 foreign income while working overseas.

Total working days outside of South Africa: 145 days

Total working days for the period:  160 days


Exempt income = 145/160 X R500,000 = R453,125.


For further clarification refer Foreign Employment blog.

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