IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Mar 2015 | Removal date: open ended
Still in force

Post-migration treatment

With effect from 1 March 2015, the South African government introduced a withholding tax on interest payments to foreign creditors. The withholding tax on interest (WTI) will be levied at a rate of 15%. To claim a reduced rate of tax in terms of a double taxation agreement, a declaration has to be submitted.
 
The WTI is only applied to interest owed to foreign creditors. Thus, the measure can be considered discriminatory since foreign loan providers are put at a cost disadvantage compared to their South African counterparts.

AFFECTED COUNTRIES

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