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Tax

Foreign income

A lot of people are currently working in foreign countries, while still being South African tax residents. There are exemptions in place for income received from a foreign employer.

The exemption applies to foreign income received as an employee. It is not applicable to independent contractors or people who are self employed.

The current rule is that income is exempt when a taxpayer works outside South Africa for 183 days during the a 12 year period, of which 60 days must be continuous. The 12 month period does not have to be for a financial year, as long as it is 12 months in succession.

SARS is currently working on amendments to the exemptions granted for foreign income. These changes are set to take effect on 1 March 2020. Follow our website to keep updated on these changes.

For taxpayers who wish to emigrate, click here for a list of documents to be submitted to SARS. This will include lists of all your assets, capital gain on assets sold, insurance policies held, pension funds, any interest in trusts etc.

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