Page 560 - SAIT Compendium 2016 Volume2

IN 63 (2) Income Tax acT: InTeRPReTaTIon noTes IN 63 (2) (i) is received by or accrued to; or
(ii) of expenditure is incurred by,
a headquarter company in any currency other than the functional currency of the headquarter company; and
(b) the functional currency of that headquarter company is a currency other than the currency of the Republic,
that amount must be determined in the functional currency of the headquarter company and must be translated to the currency of the Republic by applying the average exchange rate for that year of assessment.
(5) Where, during any year of assessment— (a) any amount—
(i) is received by or accrues to; or (ii) of expenditure is incurred by,
a domestic treasury management company in any currency other than the functional currency of the domestic treasury management company; and
(b) the functional currency of that domestic treasury management company is a currency other than the currency of
the Republic,
that amount must be determined in the functional currency of the domestic treasury management company and must be translated to the currency of the Republic by applying the average exchange rate for that year of assessment.
(6) Where, during any year of assessment— (a) any amount—
(i) is received by or accrues to; or (ii) of expenditure is incurred by,
an international shipping company in any currency other than the functional currency of the international shipping company; and the functional currency of that international shipping company is a currency other than the currency of the Republic,
(b) that amount must be determined in the functional currency of the international shipping company and must be
translated to the currency of the Republic by applying the average exchange rate for that year of assessment. (7) Any amounts received by or accrued to, or expenditure incurred by—
(a) a headquarter company contemplated in subsection (4);
(b) a domestic treasury management company contemplated in subsection (5); or an international shipping company
contemplated in subsection (6),
(c) during any year of assessment in a functional currency that is a currency other than the currency of the Republic must
be translated to the currency of the Republic by applying the average exchange rate for the relevant year of assessment.
Section 35A – Withholding of amounts from payments to non-resident sellers of immovable property
(5) If an amount has been withheld in terms of subsection (1) from any amount payable in a foreign currency, that amount so withheld must be translated to the currency of the Republic at the spot rate on the date that the amount is paid to the Commissioner.
Sections 47A to 47K – Taxation of foreign entertainers and sportspersons
47J. Currency of payments made to Commissioner.—If an amount deducted or withheld by a resident in terms
of section 47D is denominated in any currency other than the currency of the Republic, the amount so deducted or withheld and paid to the Commissioner must be translated to the currency of the Republic at the spot rate on the date on which that amount was so deducted or withheld.
Section 49A to 49H – Withholding tax on royalties
49H. Currency of payments made to Commissioner.—If an amount withheld by a person in terms of section
49E(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 49F(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.
Sections 50A to 50H – Withholding tax on interest
50H. Currency of payments made to Commissioner.—If an amount withheld by a person in terms of section
50E(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 50F(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.
Sections 51A to 51H – Withholding tax on service fees
51H. Currency of payments made to Commissioner.—If an amount withheld by a person in terms of section 51E
is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 51F(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.
Section 64N – Rebate in respect of foreign taxes on dividends
(4) For the purposes of this section, the amount of any tax paid as contemplated in subsection (2) must be translated to the currency of the Republic by applying the exchange rate used to convert the amount of the dividend in respect of which that tax is paid to the currency of the Republic.
552 saIT comPendIum oF Tax LegIsLaTIon VoLume 2