SARS - The 183-day / 60 Continuous Day Test

Cartman13

Well-Known Member
Joined
Nov 15, 2009
Messages
213
Hi

Just a quick question. I've googled this question numerous times without success.

I know there are a lot of factors involved, but can someone just clarify the following for me please?

As a simplified example - say a person was continuously working outside of SA for 7 months (±210 days). Which means the above Sars rule has been satisfied.
Now my question is, regarding the rest of the tax year, the remaining 5 months. Will these 5 months working inside of SA also be tax exempt or will normal PAYE apply to the 5 months? And only the 7 months outside the country be tax exempt?

For some reason I cannot find an answer anywhere regarding the "remaining months of a tax year" working inside of SA.

Thank you.
 

smc

Senior Member
Joined
Sep 19, 2005
Messages
703
It depends on a number of factors. But, if you are working in SA for the five months, that is SA income, and taxable as such. The 183 day test isn't relevant.
 

Muks

Well-Known Member
Joined
Sep 20, 2006
Messages
200
Hi

Just a quick question. I've googled this question numerous times without success.

I know there are a lot of factors involved, but can someone just clarify the following for me please?

As a simplified example - say a person was continuously working outside of SA for 7 months (±210 days). Which means the above Sars rule has been satisfied.
Now my question is, regarding the rest of the tax year, the remaining 5 months. Will these 5 months working inside of SA also be tax exempt or will normal PAYE apply to the 5 months? And only the 7 months outside the country be tax exempt?

For some reason I cannot find an answer anywhere regarding the "remaining months of a tax year" working inside of SA.

Thank you.

I have successfully claimed this deduction in the past. Only the income earned for the period outside the country was tax exempt.
 

phiber

Expert Member
Joined
Dec 7, 2005
Messages
4,303
Hi

Just a quick question. I've googled this question numerous times without success.

I know there are a lot of factors involved, but can someone just clarify the following for me please?

As a simplified example - say a person was continuously working outside of SA for 7 months (±210 days). Which means the above Sars rule has been satisfied.
Now my question is, regarding the rest of the tax year, the remaining 5 months. Will these 5 months working inside of SA also be tax exempt or will normal PAYE apply to the 5 months? And only the 7 months outside the country be tax exempt?

For some reason I cannot find an answer anywhere regarding the "remaining months of a tax year" working inside of SA.

Thank you.
You'd probably be required to pay tax for all 12 months under the new laws. they have added a clause that lets them classify you as a resident even though you meet the 3 factors in the test, and this is specifically for people domiciled in ZA, with families there using resources etc but managing to pass the test and not pay tax.

Best advise I can give, speak to a tax consultant. I can introduce you to one if need be.
 

FuLL_MeT4L

Expert Member
Joined
Oct 25, 2004
Messages
1,230
The 183/60 days test is used to qualify for the s10(1)(o)(ii) foreign employment tax exemption, which exempts only your foreign earned income from SA income tax. s10(1)(o)(ii) does not exempt any of your SA income earned during that same tax year. From 2020 onwards the s10(1)(o)(ii) exemption is limited to the first R1 million of foreign income.
 
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