What is the purpose of the questions appearing on the FTW01 SARS form?
16 July 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: A client is
liable to complete a FTW01 form for foreign tax that was withheld in Zimbabwe
on services rendered. On page 2 of the form, under subsection "Contact Person
in Foreign Tax Authority Details”, the following questions appear:
Have you approached the relevant Revenue Authority and
raised your concern regarding the tax levied? Y or N?
Will the deduction of 6quin be influenced in any way by SARS
if the above question is answered NO?
A: We don’t
believe that it would impact on the availability of the rebate. The question appears to relate to instances
where the tax was not deducted in accordance with the relevant treaty.
The Interpretation note (Issue 3 issued on 26 June 2015)
explains section 6quin(3A) as follows:
"With effect from 1 July 2013 a resident who wishes to claim
a foreign tax rebate under section 6quin on foreign taxes levied by a foreign
government with which South Africa has a tax treaty and which have been
withheld from payments made to the resident, must submit a return to SARS.
The return must be submitted to SARS within 60 days from the
date on which the foreign tax is withheld. The return must be made on the
"Declaration of foreign tax withheld – Section 6quin of the Income Tax Act (FWT
01)” form which is available on www.sars.gov.za. – see 7.6. Failure to submit
the return within the 60-day period will result in the resident not being able
to claim a section 6quin rebate as a deduction from normal tax.
Taxpayers who are unable to obtain all of the required
supporting documentation within the 60-day period must submit the FWT 01 form
within the 60 day period as required together with a letter explaining what
supporting documentation is outstanding, the reason it is outstanding and the
date by when it will be submitted.
This will allow SARS to consider the appropriateness of the
reasons for the delay in submitting all of the required documentation within
the time period specified in section 6quin(3A) and whether the return is still
regarded as submitted even though all the required documentation has not been
submitted. It is critical, however, that the return be submitted within the time
period specified in section 6quin(3A).”
From that it is clear that approaching the relevant Revenue
Authority is not relevant to the claiming of the rebate.
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.