{"id":199854,"date":"2017-03-09T07:16:42","date_gmt":"2017-03-09T05:16:42","guid":{"rendered":"https:\/\/wereldwyd.co.za\/implications-person-meet-183-day-rule\/"},"modified":"2017-03-09T07:16:42","modified_gmt":"2017-03-09T05:16:42","slug":"implications-person-meet-183-day-rule","status":"publish","type":"post","link":"https:\/\/wereldwyd.co.za\/en\/implications-person-meet-183-day-rule\/","title":{"rendered":"What are the implications if a person does not meet the 183 day rule?"},"content":{"rendered":"

Let\u2019s say the taxpayer is a South African resident who works on a contract in Tanzania, is employed by a Tanzanian company and is therefore taxed in Tanzania. The person does not meet the 183 day rule (of which should be 60 consecutive days) over a 12 month period. What are the tax implications?<\/p>\n

The person is \u201cdeemed to be exclusively a resident of\u201d the Republic of South Africa (RSA) for purposes of the application of the agreement entered into between the two governments for the avoidance of double taxation.<\/p>\n

We have clarified it in the article 14(2) by replacing \u201ccontracting state\u201d and \u201cother contracting state\u201d with the relevant countries.\u00a0You should then be able to interpret the paragraph without undue effort:<\/p>\n

\u201cArticle 14<\/em><\/p>\n

    \n
  1. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of the RSA in respect of an employment exercised in the United Republic of Tanzania shall be taxable only in the RSA (the first-mentioned State) if:<\/em><\/li>\n<\/ol>\n

    (a)\u00a0 the recipient is present in the United Republic of Tanzania for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; and<\/em><\/p>\n

    (b)\u00a0 the remuneration is paid by, or on behalf of, an employer who is not a resident of the United Republic of Tanzania, and<\/em><\/p>\n

    (c)\u00a0 the remuneration is not borne by a permanent establishment which the employer has in the United Republic of Tanzania.\u201d\u00a0<\/em><\/p>\n

    In essence, a \u201cresident of a contracting state\u201d would be a resident of the RSA, because you stated that the individual is a resident or because of our assumption above.<\/p>\n

    You are then correct. Tanzania then doesn\u2019t have a right to tax the remuneration to the extent that paragraph 2 applies.<\/p>\n

     <\/p>\n

    Contact the Tax Consultant Fanus Jonck at tax@jonck.net with your tax queries.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Let\u2019s say the taxpayer is a South African resident who works on a contract in Tanzania, is employed by a…<\/p>\n","protected":false},"author":214,"featured_media":191802,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[801,800],"tags":[],"class_list":["post-199854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-and-migration-news","category-news"],"taxonomy_info":{"category":[{"value":801,"label":"FINANCIAL AND MIGRATION NEWS"},{"value":800,"label":"News"}]},"featured_image_src_large":["https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/pexels-photo-1024x680-1.jpg",1024,680,false],"author_info":{"display_name":"Sue-Ann de Wet","author_link":"https:\/\/wereldwyd.co.za\/en\/author\/sue-ann-de-wet\/"},"comment_info":0,"category_info":[{"term_id":801,"name":"FINANCIAL AND MIGRATION NEWS","slug":"financial-and-migration-news","term_group":0,"term_taxonomy_id":801,"taxonomy":"category","description":"","parent":800,"count":200,"filter":"raw","term_order":"0","cat_ID":801,"category_count":200,"category_description":"","cat_name":"FINANCIAL AND MIGRATION NEWS","category_nicename":"financial-and-migration-news","category_parent":800},{"term_id":800,"name":"News","slug":"news","term_group":0,"term_taxonomy_id":800,"taxonomy":"category","description":"","parent":0,"count":494,"filter":"raw","term_order":"0","cat_ID":800,"category_count":494,"category_description":"","cat_name":"News","category_nicename":"news","category_parent":0}],"tag_info":false,"jetpack_featured_media_url":"https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/pexels-photo-1024x680-1.jpg","fimg_url":"https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/pexels-photo-1024x680-1.jpg","_links":{"self":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts\/199854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/users\/214"}],"replies":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/comments?post=199854"}],"version-history":[{"count":0,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts\/199854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/media\/191802"}],"wp:attachment":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/media?parent=199854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/categories?post=199854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/tags?post=199854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}