[Question] The Income Tax Act defines the "Republic" as the Republic of South Africa.

[PieterZ]

Hi All, please help.

The Income Tax Act defines the "Republic" as the Republic of South Africa. The land boarders are easy to define/determine but in the context of the definition of the Republic in the Act, where is the boarder at sea? Is it the 22.2km from base line (Territorial waters)?

Section 10(1)(o)(iA) exempts any income from gross income if derived by a person as a crew member of South African ship engaged in fishing outside the Republic.

If the fishing occurs beyond this boarder but not going thru a Port of Entry will it be considered by SARS as to be outside the Republic? If so, will the time spend/fishing outside this boundary play a role ?

Best regards.

[PieterZ]

Hi Myself

1. The Republic in the Act, where is the boarder at sea? Is it the 22.2km from base line (Territorial waters)? - YES

2. If the ship is regestred in South Africa accordance to section 15 of the Ship Registration Act, 1998 (Act No. 58 of 1998) then the Remuneration will be exempt.

Proof of all lays in the hands of the taxpayer.

Regards

me

[Andromeda]

PieterZ, oddly enough I was researching this exemption this morning and came absolutely nowhere. Thanks for posting the answer.