My client has been working in a foreign country for more than 183 days in a year of which 60 days were consecutive. Therefore the income he received while working overseas is exempt in terms of section 10(1)(0)(ii) of the Income Tax Act, but my client als
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
We accept that your client is a resident of the RSA, i.e. not any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the RSA and that other country for the avoidance of double taxation.
The section 10(1)(o)(ii) exemption is only available to remuneration income, as further qualified in section 10(1)(o)(ii). It doesn’t extend to other items of gross income or capital gains.
We need more detail if comment is required on the exchange item. We accept that it doesn’t relate to the remuneration. It would then be treated in terms of paragraph 43 of the Eighth Schedule.