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Withholding taxes

Sunday, 25 November 2012   (0 Comments)
Posted by: SAIT Technical
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By Michael Stein (Friday Page)

A feature of the Taxation Laws Amendment Bill 2012 read with the Tax Administration Laws Amendment Bill 2012 is that they deal with three of our withholding taxes.

The point I want to make is that, apart from PAYE, we will soon have four major withholding taxes in our Income Tax Act.

They are:

  • The 15% withholding tax on interest, which comes into effect on 1 July 2013.
  • The 15% withholding tax on royalties, which will replace the old 12% withholding tax on royalties from 1 July 2013.
  • The 15% dividends tax, which came into effect on 1April 2012.
  • The withholding of amounts from payments to non-resident sellers of immovable property, which has been in force since 2004. The rates of this tax are 5% when the seller is a natural person, 7,5% when it is a company, and 10% when it is a trust.



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.

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