South African Business Council

Tax Alert – PWC – Foreign Income

Foreign employment income: proposed repeal of exemption in section 10(1)(o)(ii)
24 July 2017
In brief
In terms of section 10(1)(o)(ii) of the Income Tax Act, 1962 (Act No. 58 of 1962) (“the Act”), South African residents are entitled to an exemption in respect of remuneration received or accrued in respect of services rendered outside South Africa. In order to qualify for the exemption, certain requirements (mainly relating to periods of absence from South Africa) must be met.
On 19 July 2017, National Treasury released the Draft Taxation Laws Amendment Bill, 2017 (“the Draft Bill”), for public comment. One of the more controversial proposals in the Draft Bill is the proposal that section 10(1)(o)(ii) be repealed in its entirety.
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