Taxpayers have been anticipating the
introduction of a withholding tax on interest paid to non-residents for a
number of years now. The effective date for the commencement of the withholding
tax on interest will be further delayed from 1 July 2013 to 1 March 2014. The
royalty withholding tax to be imposed at a rate of 15% (which is currently
imposed at a rate of 12%) will also be delayed until 1 March 2014.
Most significantly, it is proposed that
a withholding tax, presumably at a rate of 15%, will be imposed on service fees
paid to a non-resident (subject to the applicable treaty relief). The
withholding tax on service fees will also be effective from 1 March 2014. It
will be interesting to see how the legislature defines "service fees"
or "services" to determine how far-reaching this amendment will be.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.