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South Africa: Changes to foreign remuneration exemption, when working abroad

South Africa: Changes to foreign remuneration exemption

Changes to the foreign remuneration exemption will be effective 1 March 2020 and may affect South Africans working temporarily abroad.


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Currently, the foreign remuneration exemption provides that foreign remuneration earned by a South African resident-taxpayer will not be subject to South African income tax if the taxpayer has spent more than 183 days rendering services outside of South Africa in a rolling 12-month period, of which more than 60 days were consecutive.

The change to the rules means that the remuneration earned for foreign services will no longer be completely exempt from South African income tax (assuming that the taxpayer satisfies all the requirements for the exemption). Effective 1 March 2020, only the first R1 million of remuneration relating to foreign services will be exempt from South African tax (assuming that the taxpayer satisfies all of the requirements for the exemption).

Read an April 2019 report [PDF 102 KB] prepared by the KPMG member firm in South Africa

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