Section 10(1)(o) Exemption - foreign employment income. All the conditions for exempt income are complied with by the taxpayer . He is a RSA resident but work permanently outside the RSA for a non resident company. He take leave and visit the RSA for the
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
The relevant requirement, in section 10(1)(o)(ii), is “if that employee was outside the Republic”. It is only where “a person ... is in transit through the Republic between two places outside the Republic and … does not formally enter the Republic through a port of entry …” that the persons “shall be deemed to be outside the Republic”.
The current practice generally prevailing, states (and we submit correctly so), that “weekends, public holidays, annual leave days, sick leave days and rest periods (as required under the specific terms of a contract of employment) that are spent outside the Republic are taken into account for purposes of calculating the period or periods outside the Republic.” The emphasis is on the words “outside the” RSA.