SARS Section 10(1)(o)(ii) Foreign Employment Income Exemption
Evaluate whether your overseas remuneration qualifies for the Section 10(1)(o)(ii) tax exemption and calculate any residual South African tax payable.
South Africa PAYE Salary & Expat Tax Exemption Calculator
Calculate your net take-home salary in South African Rand (ZAR / R): SARS progressive tax brackets (18% to 45%), statutory Primary Rebate (R17,235), Unemployment Insurance Fund (UIF), and the Section 10(1)(o)(ii) R1.25M expat tax exemption.
Concrete Example: R600,000 Annual Gross Salary
For an annual remuneration of R600,000 (R50,000/month):
• UIF employee deduction (capped at R177.12/month): R2,125/year
• SARS PAYE Gross Tax (bracket R512,801 to R673,000 @ 36%): R121,475 + 36% on R87,199 = R152,867
• Primary Tax Rebate: -R17,235
• Net PAYE Tax Due: R135,632/year (R11,303/month)
• Net Monthly Take-Home Pay: R38,520/month (R462,243/year deposited into account).
Calculation Methodology
Income Tax Act Section 10(1)(o)(ii): exemption up to R1.25 million for South African tax residents rendering services outside South Africa for more than 183 full days (including a continuous 60-day period) during any 12-month period.
Shows the exempt portion up to R1,250,000, the taxable excess subject to SARS progressive rates, and credits for foreign taxes paid under Section 6quat.