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Behind SA’s Withholding Taxes

08 October 2013   (0 Comments)
Posted by: Author: Ingé Lamprecht
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Author: Ingé Lamprecht (Moneywebtax)

Why Sars is likely to introduce anti-avoidance measures.

As South Africa expands the number of withholding taxes it imposes, anti-abuse measures is likely to get more attention in domestic taw laws.

While the withholding tax on royalties (12%) has been levied for a couple of decades already, the South African Revenue Service (Sars) has only fairly recently introduced a withholding tax on non-resident sports persons and entertainers (15%), a 15% withholding tax on dividends and a withholding tax on immovable property (5% to 10%). A proposed 15% withholding tax on interest from 2015 is also in the pipeline.

Internationally, tax authorities use withholdings tax as a mechanism to collect taxes from non-residents who may not be easily accessible. Tax authorities also favour the tax due to the relative ease of administration thereof.

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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.


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.

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