Tax liability question - working abroad

[porra]

Heard yesterday that should one return to SA after working in the Middle East for a few years, you'd be taxed on ALL earinings because one isn't taxed while there!

Has anyone here had any experience with this..?

Thanks

[Recuperator]

SOUTH AFRICAN REVENUE SERVICE
INTERPRETATION NOTE NO. 16
DATE: 27 March 2003
ACT : INCOME TAX ACT, 1962 (the Act)
SECTION : SECTION 10(1)(o)(ii)
SUBJECT : EXEMPTION FROM INCOME TAX: FOREIGN
EMPLOYMENT INCOME

The law states:

Section 10(1)(o)(ii) exempts from income tax:
respect of services rendered outside the Republic by that person for or
on behalf of any employer, if that person was outside the Republic-
(aa) for a period or periods exceeding 183 full days in aggregate
during any 12 months period commencing or ending during
that year of assessment; and
(bb) for a continuous period exceeding 60 full days during that
period of 12 months,
and those services were rendered during that period or periods.

Been there, done that, subsequently worked in Qatar and Nigeria, as long as you stick to the 183 days out of which one period is more than 60 days continuously out of SA, as stated above, you will not pay tax.

Give details to your accountant / tax broker, with proof, e.g. passports, flight tickets/boarding passes etc.

He should then submit a nil return to SARS for the assessment years you spent out the country. You must submit the annual returns you were out of the country!

Good luck, you are still dealing with the SARS here! :hmm:

[porra]

Thanks alot for that..makes one breath easier!

Take Care

[Gunship]

The income tax man tried to explain to me and Gunss did not understand. But I had to fill in a form while I was there though (and every year thereafter).

Recuperator - thanks :ok: it is straightforward !

Cheers,

Gunss

[The Fly]

That is all well and good, but what happens when you want to bring that money back to SA, is it not now considered taxable income? I know that if you bring forex in legally, you have to fill in a form at the bank, and I bet that the tax man gets a copy of that.

[Recuperator]

The Fly (in my soup) :p ,

I have been working abroad for 5 years, doing all my tax returns through a registered tax consultant, with my money going through a major bank in South Africa, having never been asked or had to fill in any forms of any sort.

Once I transfered money from my bank account overseas, which is legal and known to the taxman, I get a call from my bank offering me a exchange rate. On acceptance by me the money is simply transferred into my account and ready to be spent as required.

Simple as asking a waiter for another bowl of soup...:ok: