What is WTI?
The WTI is a tax charged on interest paid (on or after 1 March 2015) by any person to or for the benefit of a foreign person (which includes individuals, companies, etc.) from a source within South Africa.
The foreign person is responsible for the tax, and it must be withheld by the person making the interest payment to or for the benefit of the foreign person.
Interest paid is taxed at a final withholding tax rate of 15% where exemptions or reduced rate does not apply.
When and how should it be paid?
WTI should be paid to SARS only electronically via eFiling, see how to pay via eFiling.
A payor must submit the Return for Withholding Tax on Interest (WT002), which is a summary of the total of all interest payments made and tax withheld during a month, to SARS. The WT002 and the payment must be submitted to SARS before the end of the month after the month in which the interest was paid.
Top Tip: If the last day of the month is a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.
What else is needed?
SARS will need a reconciliation summary of all the WTI payments made for the year. This is where you will declare who you withheld tax from.
- An IT3(b) – Certificate of Income from Investments, Property Rights, Royalties and WTI must be completed and given to the foreigner and SARS. Submission of the IT3(b) (WTI tax) to SARS can be done using one of the Third Party Data Submission Platforms.
Frequently Asked Questions
FAQ: How is interest paid to a non-resident from a South African source taxed?
As from 1 March 2015 interest from a South African...
Read MoreFAQ: 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...
Read MoreFAQ: When is the WTI levied?
The withholding tax must be withheld when any interest is...
Read MoreFAQ: What is meant by “due and payable”?
For an amount to become due and payable, the amount...
Read MoreFAQ: When does accrual of interest occur?
Interest will accrue at different accrual periods as contractually agreed...
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