would like to provide an opinion on investing in Chile. The DTA between SA and
Chile is, however, only signed not ratified. What is meant when a DTA is signed
A: This is dealt with in section
108 of the Income Tax Act (and of course the Constitution allows for it).
The process is as follows:
countries sign the agreement after it has been negotiated. It must then
be ratified by both countries. In terms of the RSA ratify means ‘approval
by Parliament of any such agreement, as contemplated in section 231 of the
Constitution’. The next step would then be to notify, by publication in
the Gazette, the arrangements thereby made. The arrangements so notified
shall thereupon have effect as if enacted in the relevant Act.
The agreement with Chile is
therefore not effective yet.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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.