FAQ: What is meant by “due and payable”?
For an amount to become due and payable, the amount must not only be owing, but due to be paid. The right to claim payment of interest will be dependent on the contract that has been drawn up between the parties.
FAQ: When is the WTI levied?
The withholding tax must be withheld when any interest is paid to a non-resident on or after the effective date of 1 March 2015. Interest for the purpose of the withholding tax is deemed to be paid on the earlier of the date when the interest is paid or becomes due and payable.
FAQ: Who can be appointed to change my banking details?
The following persons, may be appointed to change your banking details on your behalf: Requestor with mandate: Personal Assistant/Clerk/Administrative officer to the tax practitioner, Tax Consultant, Director, Fund Administrator, Secretary, Attorney, Advocate, Legal Advisor, Auditor, Bookkeeper; etc. A Representative with a once off mandate won’t be able to change banking details on eFiling if he/she […]
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 […]
FAQ: I will be starting to work overseas, but have never worked in South Africa nor registered for tax. Will I need to register and pay tax while working overseas?
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source. Foreign taxes proved to be payable to a foreign government may generally be credited against […]
FAQ: What will the effect of CGT be when calculating the deduction for donations, medical and retirement fund contributions?
The impact of a taxable capital gain on the calculation of certain deductions is as follows: Donations Under section 18A(1) of the Act a person is entitled to a deduction for qualifying donations to the extent that they do not exceed 10% of taxable income. Since a taxable capital gain forms part of taxable income […]
FAQ: I can’t access eFiling on my Linux operating system, as I can’t install the latest version of Flash?
We are aware of this issue, and as a workaround, you can install the Chrome browser on your Linux operating system. The Chrome browser has built-in plugins for the latest Flash version.
FAQ: Is maintenance paid in terms of a divorce court order taxable?
Any amount received by a spouse or ex-spouse by way of alimony or allowance or maintenance of such person under any judicial order, written agreement of separation or under any order of divorce, is exempt from normal tax under the Income Tax Act. The spouse who pays the maintenance is also not entitled to claim […]
FAQ: What if the Withholding Tax on Royalties Declaration (WTRD) isn’t sent in time?
If the foreign person doesn’t send the Withholding Tax on Royalties Declaration (WTRD), for either an exemption or a reduced rate, before payment of the royalty is made, they have three years in which correct this and re-submit to SARS. A refund may be claimed for the additional amount of tax paid, if needed.
FAQ: What if the royalty is paid in a foreign currency?
The amount of the royalty must be converted to South African rand (R) at the spot rate on the day the tax is withheld.
