Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


S10(1)(o)(ii) - does all the time out of SA need to be spent actually working?



I am a freelancer, and last year I spent 248 days out of SA, in three blocks (including one block of more than 60 days). During some of this time out of the country, I did some contract work - two jobs for two different foreign companies, and one job for a South African company. But I spent much of the time not actually working, but travelling/holidaying. Of the 248 days, only 97 were spent on work contracts. So I just want to clarify whether the income I earned on those three contract jobs is tax-exempt in terms of Section 10(1)(o)(ii).

TaxTim TaxTim says:
29 January 2015 at 14:13

The legislation refers to income earned whilst being out of the country during any 12 month period for 183 days or more of which 60 must be consecutive. Despite not working during parts of it, you met the criterion for not being inside South Africa and therefore the income earned during that period will be tax exempt.

The South African company, how long did you work for them?

Freelancer says:
29 January 2015 at 14:24

I worked for the South African company from May 30 to July 17 2014. I have an employment contract - should I submit that to SARS?

What proof would I need to submit to show that I was out of the country? Passport stamps?

TaxTim TaxTim says:
29 January 2015 at 22:28

You would need to show proof from the South African company that you were allowed to work outside South Africa and your passport pages. You need to calculate your income and exempt income from this period outside SA. The amount you calculate must be included under the ''other deductions'section under s(10)(1)(o)(ii) deduction.

Freelancer says:
30 January 2015 at 21:11

Sorry, I'm not clear what you mean by "allowed to work outside South Africa". I am a freelancer and I the South African company in question contracted me for a fixed term specifically to work for them overseas. The job was physically located out of South Africa... I had to physically be in another country in order to do the job for them.

TaxTim TaxTim says:
1 February 2015 at 23:48

The South Africa company needs to provide you with a letter or a contract stating that your employment or services took place outside South Africa and this will be used to submit to SARS when they ask for additional supporting documents.

This entry was posted in Tax Q&A and tagged , , , , , , . Bookmark the permalink.




Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.