FAQ: Will non-residents be required to declare interest subject to withholding tax on their income tax returns?

Under normal circumstances they will not have to since they are not tax resident in South Africa and section 10(1)(h) exempts the interest from normal tax. However, if the provisions of section 10(1)(h) are not met the interest will have to be declared on the return, in which case the interest should be exempt from withholding tax on interest. Should withholding tax on interest have been withheld, the withholding tax on interest will not be allowed on assessment by SARS, but should be refunded by the entity who withheld the tax.

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