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Working abroad: the R1.25 million exemption

If you are still a South African tax resident and work overseas as an employee, the first R1.25 million a year of your foreign salary can be exempt from South African tax. Enter your salary to see what is left to tax here.

R65 800taxable in South Africa a year

R0South African tax on it, before foreign tax credits

Salary in rand: R1 315 800
Exempt: R1 250 000
Tax per month: R0

The part above R1.25 million is below the income tax threshold on its own, so with no other South African income no tax is due. You still declare it on your return.

Who qualifies

You are a South African tax resident. If you have ceased tax residency, the exemption does not apply because South Africa does not tax your foreign salary at all.
You are an employee, working for a South African or a foreign employer. Independent contractors and national, provincial and local government employees are excluded.
You worked outside South Africa for more than 183 full days in any 12 month period, including more than 60 full days in a row. The 12 months need not be a tax year. Days between contracts, when you are not working, do not count.

How it works

The first R1 250 000 of qualifying foreign employment income each tax year is exempt.
Anything above that is taxed in South Africa at the normal rates, whether or not you paid tax abroad.
Foreign tax paid on the taxable part can usually be credited against your South African tax (section 6quat). Foreign tax on the exempt part cannot.
If you worked partly in South Africa, only the share earned on days abroad qualifies.
You still declare the income on your South African tax return.

This calculator assumes no other South African income and a taxpayer under 65, and converts at the European Central Bank reference rate on 2026-10-15 (R21.93 to the pound, R18.56 to the euro). Source: SARS, foreign employment income exemption. General information, not tax advice: speak to a registered tax practitioner about your situation.