Page 277 - SAIT Compendium 2016 Volume1

s 49F INCOME TAX ACT 58 OF 1962 s 50B
following the month during which the royalty is paid, unless the tax has been paid by any other person.
[Sub-s. (1) substituted by s. 62 (1) of Act 43 of 2014 – date
of commencement: 1 January 2015; the substituted subsection applies iro royalties that are paid or that become due and payable on or after 20 January 2015.]
(2) Any person that withholds any withholding tax on royalties in terms of section 49E must submit a return and pay the tax to the Commissioner by the last day of the month following the month during which the royalty is paid. [Sub-s. (2) substituted by s. 62 (1) of Act 43 of 2014 – date
of commencement: 1 January 2015; the substituted subsection applies iro royalties that are paid or that become due and payable on or after the 20 January 2015.]
[S. 49F inserted by s. 12 (1) of Act 21 of 2012 – date of commencement: 1 July 2013; this section applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of s. 35 of the Income Tax Act, 1962.]
49G Refund of withholding tax on royalties
Notwithstanding Chapter 13 of the Tax Administration Act, if—
(a) an amount is withheld from a payment of a royalty as contemplated in section 49E (1);
(b) a declaration contemplated in section 49E (2) or (3) in respect of that royalty is not submitted to the person paying that royalty by the date of the payment of that royalty; and
(c) a declaration contemplated in section 49E (2) or (3) is submitted to the Commissioner within three years after the payment of the royalty in respect of which the declaration is made,
so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable by the Commissioner to the person to which the royalty was paid.
[S. 49G inserted by s. 12 (1) of Act 21 of 2012 – date of commencement: 1 July 2013; this section applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of s. 35 of the Income Tax Act, 1962.]
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.
[S. 49H (1) inserted by s. 63 (1) of Act 43 of 2014 – date of commencement deemed to have been 1 July 2013; the section applies iro royalties that are paid or that become due and payable on or after 20 January 2015.]
50 . . .
[S. 50 amended by s. 23 of Act 90 of 1962, by s. 19 of Act 95 of 1967, by s. 32 (1) of Act 89 of 1969, by s. 25 (1) of Act 88 of 1971, by s. 25 of Act 65 of 1973, by s. 35 (1) of Act 85 of 1974, by s. 27 of Act 121 of 1984 and by s. 20 (1) of Act 85 of 1987 and repealed by s. 32 (1) of Act 101 of 1990.]
Part IVB
Withholding tax on interest (ss. 50A–50H)
[Part IVB (ss. 50A–50H) inserted by s. 98 (1) of Act 31 of 2013 – date of commencement: 1 March 2015 (‘1 January
2015’ replaced by ‘1 March 2015’ by s. 125 of Act 43 of 2014); this Part applies iro interest that is paid or that becomes due and payable on or after that date.]
50A De nitions
(1) In this Part—
‘bank’ means any—
(a) any bank or branch as de ned in section 1 of the
Banks Act respectively;
[Para. (a) substituted by s. 64 (1) of Act 43 of 2014 – date of commencement: 1 March 2015; the substitution applies iro interest that is paid or that becomes due and payable after that date. (Note: commencement date (previously 20 January 2015) and related provisions retrospectively substituted by s. 153 (1) of Taxation Laws Amendment Act, 2015 wef 20 January 2015.)]
(b) mutual bank as de ned in section 1 of the Mutual Banks Act, 1993 (Act 124 of 1993); or
(c) co-operative bank as de ned in section 1 of the Co- operative Banks Act, 2007 (Act 40 of 2007);
‘Development Bank of Southern Africa’ means the Development Bank of Southern Africa Limited, incorporated in terms of the Development Bank of Southern Africa Act, 1997 (Act 13 of 1997);
‘foreign person’ means any person that is not a resident;
‘Industrial Development Corporation’ means the Industrial Development Corporation of South Africa Limited, registered in terms of the Industrial Development Corporation Act, 1940 (Act 22 of 1940);
‘interest’ means interest as contemplated in paragraph (a) or (b) of the de nition of ‘interest’ in section 24J (1);
[De nition of ‘interest’ inserted by s. 70 (1) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016; the inserted de nition applies iro interest that is paid or that becomes due and payable on or after that date.]
‘listed debt’ means any debt that is listed on a recognised exchange as de ned in paragraph 1 of the Eighth Schedule.
[S. 50A inserted by s. 98 (1) of Act 31 of 2013 – date
of commencement: 1 March 2015 (‘1 January 2015’ replaced by ‘1 March 2015’ by s. 125 of Act 43 of 2014); this section applies iro interest that is paid or that becomes due and payable on or after that date.]
50B Levy of withholding tax on interest
(1) There must be levied for the bene t of the National Revenue Fund a tax, to be known as the withholding tax on interest, calculated at the rate of 15 per cent of the amount of any interest that is paid by any person to or for the bene t of any foreign person to the extent that the amount is regarded as having been received or accrued from a source within the Republic in terms of section 9 (2) (b).
(2) For the purposes of this Part, interest is deemed to be paid on the earlier of the date on which the interest is paid or becomes due and payable.
(3) The withholding tax on interest is a nal tax.
(4) Where a person making payment of any amount of interest to or for the bene t of a foreign person has withheld an amount as contemplated in section 50E (1), that person must, for the purposes of this Part, be deemed to have paid the amount so withheld to that foreign person.
[S. 50B inserted by s. 98 (1) of Act 31 of 2013 – date
of commencement: 1 March 2015 (‘1 January 2015’ replaced by ‘1 March 2015’ by s. 125 of Act 43 of 2014); this section applies iro interest that is paid or that becomes due and payable on or after that date.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS