ANNOUNCEMENT 01 Mar 2015

In March 2015, the government of South Africa announced a change to the rules for resident foreign nationals.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Nicolette Smit and Chris de Bruyn of ENSafrica, 18 February 2015, "The introduction of withholding tax on interest - when is interest due and payable?": https://www.ensafrica.com/news/the-introduction-of-withholding-tax-on-interest-when-is-interest-due-and-payable?Id=1705&STitle=tax%20ENSight

South African Revenue Service (SARS), 23 April 2015, "New Developments on Withholding Tax On Interest (WTI)": http://www.sars.gov.za/TaxTypes/WTI/Pages/default.aspx


Inception date: 01 Mar 2015 | Removal date: open ended

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 SECTORS

 
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AFFECTED PRODUCTS

 
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