Inconsistent application and withholding of taxes in South Africa is affecting UK exporters and investors
Trade barrier summary
This affects UK businesses and investors doing business with South Africa. Inconsistency and lack of clarity in applying taxes may result in increased costs. This is due to the Income Tax Act 58 of 1962, sections 35A and 64A. A 20% tax applies to any dividend from a business in South Africa to a non-resident, when the shares are listed on any South African exchange. The tax is applied on the dividend's owner. A tax treaty with the UK means reducing this to 5% to 15%. Additional withholding taxes apply to disposable immovable property - consisting of 5% when the seller is an individual, 7.5% for a company, and 10% for a trust.
Sectors affected
- Financial and professional services
Resolved
No
Date reported
25 September 2020
Last updated
18 December 2020
Public ID
PID-GXMZR9
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