Page 279 - SAIT Compendium 2016 Volume1

s 50E INCOME TAX ACT 58 OF 1962 s 51D
the circumstances affecting the application of the
agreement referred to in subparagraph (i) change.
[S. 50E 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.]
50F Payment and recovery of tax
(1) If, in terms of section 50C, a foreign person is liable for any amount of withholding tax on interest in respect of any amount of interest that is paid to or for the bene t of the foreign person, that foreign person must pay that amount of withholding tax by the last day of the month following the month during which the interest is paid, unless the tax has been paid by any other person.
(2) Any person that withholds any withholding tax on interest in terms of section 50E must submit a return and pay the tax to the Commissioner by the last day of the month following the month during which the interest is paid.
[S. 50F 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.]
50G Refund of withholding tax on interest
Notwithstanding Chapter 13 of the Tax Administration Act, if—
(a) an amount is withheld from a payment of an amount of interest as contemplated in section 50E (1);
(b) a declaration contemplated in section 50E (2) (b) or (3) in respect of that interest is not submitted to the person paying that interest by the date of the payment of that interest; and
(c) a declaration contemplated in section 50E (2) (b) or (3) is submitted to the Commissioner within three years after the payment of the interest 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 interest was paid.
[S. 50G 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.]
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.
[S. 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 section applies iro interest that is paid or that becomes due and payable on or after that date.]
51 . . .
[S. 51 repealed by s. 33 (1) of Act 101 of 1990.]
[NB: A Part IVC (ss. 51A–51H) has been inserted by s. 99 (1) of Act 31 of 2013, a provision that is to come into operation on 1 January 2017 (‘1 January 2016’ replaced by ‘1 January 2017’ by s. 149 (1) of Taxation Laws Amendment Act, 2015)
and is to apply iro service fees that are paid or become due and payable on or after that date. See Pendlex below.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 271
Pendlex (to come into operation on 1 January 2017)
Part IVC
Withholding tax on service fees (ss. 51A–51H)
51A De nitions
In this Part—
‘foreign person’ means any person that is not a resident; ‘service fees’ means any amount that is received or
accrues in respect of technical services, managerial services and consultancy services but does not include services incidental to the imparting of or the undertaking to impart any scienti c, technical, industrial or commercial knowledge or information, or the rendering of or the undertaking to render any assistance or service in connection with the application or utilisation of such knowledge or information.
[De nition of ‘service fees’ substituted by s. 66 (1) of
Act 43 of 2014 – date of commencement: 1 January 2016; this substitution applies iro service fees that are paid or that become due and payable on or after that date.]
51B Levy of withholding tax on service fees
(1) There must be levied for the bene t of the National Revenue Fund a tax, to be known as the withholding tax on service fees, calculated at the rate of 15 per cent of the amount of any service fee 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 by or accrued to that foreign person from a source within the Republic.
(2) For the purposes of this Part, a service fee is deemed to be paid on the earlier of the date on which the service fee is paid or becomes due and payable.
(3) The withholding tax on service fees is a nal tax.
(4) Where a person making payment of a service fee to or for the bene t of a foreign person has withheld an amount of withholding tax on service fees, that person must, for the purposes of this Part, be deemed to have paid the amount so withheld to that foreign person.
51C Liability for tax
(1) A foreign person to which a service fee is paid is liable for the withholding tax on service fees to the extent that the service fee is regarded as having been received by or accrued to that foreign person from a source within the Republic.
(2) Any amount of withholding tax on service fees that is—
(a) withheld as contemplated in section 51E (1); and
(b) paid as contemplated in section 51F (1),
is a payment made on behalf of the foreign person to which the service fee is paid in respect of that foreign person’s liability under subsection (1).
51D Exemption from withholding tax on service fees
(1) A foreign person is exempt from the withholding tax on service fees if—
(a) that foreign person is a natural person who was physically
present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the service fee is paid;
(b) the service in respect of which that service fee is paid is effectively connected with a permanent establishment of that foreign person in the Republic if that foreign person is registered as a taxpayer in terms of Chapter 3 of the Tax Administration Act; or
INCOME TAX ACT – SECTIONS