01 — STATUS
Employee relationship
You must earn remuneration as an employee for services rendered for or on behalf of an employer. Independent contractor and business income require separate analysis.
Section 10(1)(o)(ii) tax support
Working abroad does not automatically make your income tax-free.
If you are a South African tax resident earning employment income overseas, the foreign employment income exemption may apply—but the day count, type of income and evidence must all be correct.
Remote assistancePersonal eligibility reviewSARS return support
The three essentials
Qualification depends on more than living overseas.
Section 10(1)(o)(ii) is aimed at qualifying employment remuneration for services physically rendered outside South Africa.
02 — DAYS
183 + 60 test
You must be outside South Africa for more than 183 full days in a qualifying 12-month period, including one continuous period exceeding 60 full days.
03 — AMOUNT
Annual exemption limit
Where the requirements are met, the exemption is limited to the first R1.25 million of qualifying foreign employment income for the year of assessment.
Important: This exemption is not the same as ceasing South African tax residency. It also does not mean the income can simply be left off your tax return.
What Taxcomplied checks
Your timeline and income must tell the same story.
We review the facts before deciding how the income should be disclosed and what evidence should support the claim.
Travel pattern
Entry and exit dates, full days outside South Africa, and the qualifying 12-month window.
Work performed
Where the services were physically rendered and whether they were performed for an employer.
Income earned
Foreign and local employment components, currency conversion and the portion relating to offshore services.
Foreign tax
Whether foreign tax was paid and whether a section 6quat foreign tax credit may need consideration.
Tax residency
Whether you remain South African tax resident or whether a different residency analysis is required.
Prepare your documents
Evidence matters when SARS asks questions.
Your exact document list will depend on the case, but these are common starting points.
Passport pages and travel schedule
Employment contract or secondment letter
Foreign and SA payslips
Foreign tax certificate or assessment
IRP5 or IT3(a), if issued
Proof of foreign taxes paid
Work roster or employer confirmation
Prior tax return and SARS notices
How it works
A clear route from question to submission.
Send an initial enquiry
Tell us where you worked, your employer, the relevant dates and whether you remain tax resident in South Africa.
Receive a document request and fee
We confirm what is needed for your circumstances and the scope of the work before it enters the work queue.
Eligibility and tax review
Your days, income, foreign tax and supporting records are analysed together.
Return preparation and submission
Once the position and documents are complete, the tax return is prepared for approval and submission.
Common questions
Before you assume the exemption applies.
I have lived abroad for years. Do I automatically qualify?
No. Living abroad does not by itself establish the section 10 exemption, nor does it automatically determine your South African tax residency. Your employment, days and residency facts must be reviewed.
Is all foreign income exempt up to R1.25 million?
No. The limit applies to qualifying foreign employment income where the statutory requirements are met. Investment, rental, business and independent contractor income are not automatically covered.
What if I paid tax in another country?
Foreign tax paid may be relevant to a foreign tax credit, but it does not replace the need to declare the income correctly. The credit and the exemption are separate calculations.
What if I do not meet the 183/60-day test?
The foreign employment income exemption may not apply, but other relief—such as a foreign tax credit—may need to be considered based on your facts.
Professional credentials
Specialist attention, backed by professional standing.
Your foreign-employment tax position is reviewed by Sharleen Williams, an accountant and registered tax practitioner.
Start here
Email your enquiry →Request a foreign employment tax assessment.
Include the country where you worked, your employer, your approximate travel dates and whether foreign tax was deducted. Please do not email passport copies until requested.
087 265 6079info@taxcomplied.co.za
General information only. Eligibility and tax treatment depend on the full facts, applicable law and supporting documents. A consultation or assessment does not guarantee that an exemption, refund or specific SARS outcome will apply.