Q: My client has acquired new business in Kenya and was told by his client in
this country that there is a 20% withholding tax in Kenya, which must be
withheld from my client from RSA. The withholding tax can be claimed in RSA. I
have searched the international DTA’s between RSA and other countries worldwide
and the one with Kenya is apparently signed but not ratified in RSA, meaning
that it is not valid between the two countries. Is there another agreement
between RSA and Kenya?
A: With regards to
the query you are correct that the DTA with Kenya has not come into operation.
You would therefore have to determine whether your client qualifies for the income
tax section 6quat rebate in respect of the foreign taxes paid on foreign source
income as a form of tax relief for the withholding taxes imposed.
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.