Foreign Employment Income
10(1)(o) any form of remuneration—
(i) as defined in paragraph 1 of the Fourth Schedule, derived by any person as an officer or crew member of a ship engaged—
(aa) in the international transportation for reward of passengers or goods; or
(bb) in the prospecting, exploration or mining (including surveys and other work of a similar nature) for, or production of, any minerals (including natural oils) from the seabed outside the Republic, where such officer or crew member is employed on board such ship solely for purposes of the “passage” of such ship, as defined in the Marine Traffic Act, 1981 (Act No. 2 of 1981),
if such person was outside the Republic for a period or periods exceeding 183 full days in aggregate during the year of assessment;
(iA) as defined in paragraph 1 of the Fourth Schedule, derived by any person as an officer or crew member of a South African ship as defined in section 12Q (1) mainly engaged—
(aa) in international shipping as defined in section 12Q (1); or
(bb) in fishing outside the Republic; or
(ii) to the extent to which that remuneration does not exceed R1,25 million in respect of a year of assessment and is received by or accrues to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance, including any amount referred to in paragraph (i) of the definition of gross income in section 1 or an amount referred to in section 8, 8B or 8C, in respect of services rendered outside the Republic by that employee for or on behalf of any employer, if that employee was outside the Republic—
(aa)
(a) for a period or periods exceeding 183 full days in aggregate during any period of 12 months; or
(b) for a period or periods exceeding 117 full days in aggregate during any period of 12 months in respect of any year of assessment ending on or after 29 February 2020 but on or before 28 February 2021; 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: Provided that—
(A)for purposes of this subparagraph, a person who is in transit through the Republic between two places outside the Republic and who does not formally enter the Republic through a port of entry as contemplated in section 9 (1) of the Immigration Act, 2002 (Act No. 13 of 2002), or at any other place as may be permitted by the Director General of the Department of Home Affairs or the Minister of Home Affairs in terms of that Act, shall be deemed to be outside the Republic;
(B)the provisions of this subparagraph shall not apply in respect of any remuneration—
(AA) derived in respect of the holding of a public office contemplated in section 9 (2) (g); or
(BB) received by or accrued to any person in respect of services rendered or work or labour performed as contemplated in section 9 (2) (h); and
(C)for the purposes of this subparagraph, where remuneration is received by or accrues to any employee during any year of assessment in respect of services rendered by that employee in more than one year of assessment, the remuneration is deemed to have accrued evenly over the period that those services were rendered;
The purpose of this newsflash is to inform on clarification from SARS on some issues relating to Foreign Employment Income. On 28 June 2021, SARS updated the Interpretation Note #16 (Issue 4): Exemption from Foreign Employment Income in terms of section 10(1)(o)(ii). Complying with the “183/60-day” test
When an employer requires an employee to renders services outside the Republic on its behalf, such employer might assume that the ‘183/60-day’ test will be met based on the period relating to the services to be rendered outside RSA. However, employers cannot be sure that this requirement has been met due to the fact that an employee might return to the RSA for a weekend, etc. In such cases, the employer will count the weekend as part of the days outside the RSA. normal income code, increase with 50). Paragraph 11B was repealed by s.