The current ruling for foreign income not to be taxed is that the individual must be out of the country for 183 days in aggregate during any 12 month period. However there have been reports in the media that this will be lowered to 117 days. When will this come into effect?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
There is no ‘current ruling’, but an amendment to the Act. It has not been promulgated yet, but can be found in Bill 27B—2020, which was tabled during the last week of October and is currently before the NCOP. It adds the following to item (aa) of subsection (1)(o)(ii): “(b) for a period or periods exceeding 117 full days in aggregate during any period of 12 months in respect of any year of assessment ending on or after 29 February 2020 but on or before 28 February 2021”. The amendment, when promulgated, will be deemed to have come into operation on 29 February 2020.