This exemption is given based on the physical absence test, as identified in the Income Tax Act. This test details that, in order to qualify for the tax exemption, an individual that is working abroad and employed by either a local or foreign employer must be physically outside of the Republic of South Africa:
- For a period exceeding 183 full days in aggregate during any continuous period of 12 months
- For a continuous period exceeding 60 full days within that period of 12 months.
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