National Treasury has confirmed that the tax exemption for foreign employment income, as contained in section 10(1)(o)(ii) of the Income Tax Act, will be amended to allow for the first R1 million of foreign remuneration per year to be exempt from tax in South Africa if the individual is outside of South Africa, for a certain period of time.

This is a welcome change from Treasury’s previous stance on the matter, which proposed a complete repeal of the exemption, with foreign remuneration consequently fully taxable in South Africa.