When the Foreign Tax Withheld (FTW001) form has to be submitted to SARS for the section 6quin rebate
29 October 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: A client in
South Africa provides services to foreigners who visit South Africa. One of her
clients is a foreign company in a country that does not have a Double Tax
Agreement (DTA) with RSA. That foreign company had to withhold tax from the
amounts paid to my client as per the tax laws in that country.
We will now have to submit the Foreign Tax Withheld (FTW001)
form each time withholding tax has been deducted in order to claim the Section
6quin rebate at the end of the financial year.
questions are as follows:
When does the FTW001 form have to be submitted and when must
SARS to inform us whether the withholding tax will be allowed to be deducted?
A: In response to
your first question, section 6quin(3A) states that the FTW01 form must be
submitted to SARS within 60 days from the date on which that amount of foreign
tax is withheld.
Regarding your second question, SARS will only provide
feedback on assessment when the IT14 is submitted.
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.