What's new for taxpayers seeking foreign work exemptions and other claims
There have been tweaks to exemptions for work done outside SA, with more drastic changes coming
Tax return filing season opens on Sunday with some new measures for taxpayers who want to claim the tax exemption for income earned while working outside South Africa. Marc Sevitz, a director of TaxTim which provides tax practitioner services online, says you are currently exempt from paying tax on income earned while working in a foreign country if you are physically out of South Africa for more than 183 days a year. The exemption applies regardless of whether you pay tax in the foreign country. The biggest change to the tax return this year is that the South African Revenue Service now requires details of any income that was subject to tax in a foreign country and reflected on an IRP5 you’re your employer, Sevitz says. But, warns Sevitz, the much-anticipated changes to the foreign employment exemption section of the Income Tax Act will take effect from March 1 2020. From that date taxpayers will no longer have a complete exemption from paying tax on income earned when working outs...
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