My client is working for the United Nations and receives a salary that is taxable at source.
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
We need more information before we can provide the guidance required.
If we accept that the services are rendered in the RSA, section 10(1)(c) provides an exemption in respect of salary and emoluments, (in this instance probably items (iv) – (vi)) of the Income Tax Act. It generally then applies to “any salary and emoluments payable to any subject of a foreign state” who is either temporarily employed in the RSA or not ordinarily resident in the RSA. The other requirement is that “the exemption of such salary and emoluments is authorized by an agreement entered into by the governments of such foreign state” or the relevant institution and the RSA. If the client is a resident of the RSA this would not be available.
If the services are rendered outside the RSA, we agree with your view. Section 10(1)(o)(ii) or section 6quat would provide relief from the double tax that may arise.