I have a client that worked abroad (Congo) during the 2017 tax year. The total amount of days outside RSA was 215 days of which 60 day was continuous. His employer loaded his income as follows: Taxable income (3601)(3605)(3713)(3808) was R 298796.00 and h
Important:
This answer is based on tax law for the year ending 28 February 2018.
Answer:
We are not sure why no reference is made to code 3651 or 3763. In terms of article 14 of the RSA / Congo treaty, both countries have a right to tax the income. South Africa then, under the existing law, gives relief for the double tax by way of an exemption.
The principle however, is that remuneration received by or accrued during a qualifying period for services rendered within the Republic does not qualify for exemption.
SARS is of the view that “remuneration earned during a qualifying period in respect of services that were rendered both inside and outside the Republic must be apportioned so that only the income relating to foreign services is exempt.”
The total package is certainly not exempt.