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How should a foreign withholding tax be disclosed in an ITR14 tax return?

16 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Techical

Q: My question is as follows:

My client (a company) invoices its customers, which are in Botswana. The customers have withheld 10% of the payment as tax in Botswana. I have sent this information to SARS on the FTW01 form.

How does this affect the ITR14 tax return? Must the total amount of the withholding tax (WHT) be deducted from their profits, as they have never received this money?

A: In our view the full amount accrues to the taxpayer as gross income for the purposes of the tax calculation and disclosure, notwithstanding that only 90% has been received due to the WHT. The amount withheld as tax will possibly be claimable as a rebate against the taxpayers SA tax liability hence the submission of the FTW01 form.

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.


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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