[Question] Tax when working abroad

[RVH]

I have a client (SA citizen) that worked for 2 months in SA during the 2012-year.
He worked the rest of the year in Namibia, and was taxed accordingly.
He has 2 IRP5's- one for SA and one for Namibia. Do both need to be included in his SA-tax return?
If so, is there a double-tax agreement between SA & Namibia?
Do I use the physical presence test to determine if the Namibian income is taxable in SA?
Does he need to submit a Namibian Tax return?

[geraldenek]

Firstly you get your ordinary and physical residency test.

On physical he is still a south african resident as he was only working there for 10 months of one tax year. You need to be out of the country for the following days in order not to be a resident and all of the requirements must be met:

• for a period or periods exceeding 91 days in aggregate during the relevant year of assessment, as well as
• for a period or periods exceeding 91 days in aggregate during each of the five years of assessment preceding such year of assessment, and
• for a period or periods exceeding 915 days in aggregate during those five preceding years of assessment.

he does not need to submit a namibian tax return. You will declare all income in the south african tax return the amount of tax paid in nambia will be credits on his tax return. he won't get the money back for foreign tax paid but can utilise this tax towards future periods if his tax paid exceeds his tax payable.