Page 280 - SAIT Compendium 2016 Volume1

s 51D
INCOME TAX ACT 58 OF 1962 s 55
(c) that service fee constitutes remuneration paid by an employer to an employee.
(2) For the purposes of this section—
‘employee’ means an employee as de ned in paragraph 1 of the Fourth Schedule;
‘employer’ means an employer as de ned in paragraph 1 of the Fourth Schedule;
‘remuneration’ means remuneration as de ned in paragraph 1 of the Fourth Schedule.
51E Withholding of withholding tax on service fees by payers of service fees
(1) Subject to subsections (2) and (3), any person making payment of any service fee to or for the bene t of a foreign person must withhold an amount as contemplated in section 51B from that payment.
(2) A person must not withhold any amount from any payment contemplated in subsection (1) if the foreign person to or for the bene t of which that payment is to be made has—
(a) by a date determined by the person making the payment; or
(b) if the person making the payment did not determine a date as contemplated in paragraph (a), by the date of the payment,
submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the foreign person is, in terms of section 51D, exempt from the withholding tax on service fees in respect of that payment.
(3) The rate referred to in section 51B (1) must, for the purposes of that subsection, be reduced if the foreign person to or for the bene t of which the payment contemplated in that subsection is to be made has—
(a) by a date determined by the person making the
payment; or
(b) if the person making the payment did not determine a
date as contemplated in paragraph (a), by the date of
the payment,
submitted to the person making the payment a declaration in such form as may be prescribed by the Commissioner that the service fee is subject to that reduced rate of tax as a result of the application of an agreement for the avoidance of double taxation.
51F Payment and recovery of tax
(1) If, in terms of section 51C, a foreign person is liable for any amount of withholding tax on service fees in respect of any service fee 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 service fee is paid, unless the tax has been paid by any other person.
(2) Any person that withholds any withholding tax on service fees in terms of section 51E must submit a return and pay the tax to the Commissioner by the last day of the month following the month during which the service fee is paid.
51G Refund of withholding tax on service fees
Notwithstanding Chapter 13 of the Tax Administration Act, if—
(a) an amount is withheld from a payment of a service fee as contemplated in section 51E (1);
(b) a declaration contemplated in section 51E (2) or (3) in respect of that service fee is not submitted to the person paying that service fee by the date of the payment of that service fee; and
(c) a declaration contemplated in section 51E (2) or (3) is submitted to the Commissioner within three years after the payment of the service fee 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 service fee was paid.
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.
52 . . .
[S. 52 amended by s. 24 of Act 90 of 1962 and by s. 36 (1) of Act 85 of 1974 and repealed by s. 34 (1) of Act 101 of 1990.]
53 . . .
[S. 53 repealed by s. 35 (1) of Act 101 of 1990.]
Part V Donations tax (ss. 54–64)
54 Levy of donations tax
Subject to the provisions of section 56, there shall be paid for the bene t of the National Revenue Fund a tax (in this Act referred to as donations tax) on the value of any property disposed of (whether directly or indirectly and whether in trust or not) under any donation by any resident (in this Part referred to as the donor).
[S. 54 amended by s. 37 of Act 85 of 1974 and by s. 20 of Act 103 of 1976, substituted by s. 24 of Act 90 of 1988, amended by s. 41 of Act 36 of 1996 and substituted by s. 40 of Act 59 of 2000.]
55 De nitions for purposes of this Part
(1) In this Part, unless the context otherwise indicates—
‘cumulative taxable value’ . . .
[De nition of ‘cumulative taxable value’ deleted by s. 25 (a)
of Act 90 of 1988.]
‘donation’ means any gratuitous disposal of property including any gratuitous waiver or renunciation of a right; ‘donee’ means any bene ciary under a donation and includes, where property has been disposed of under a donation to any trustee to be administered by him for the bene t of any bene ciary, such trustee: Provided that any donations tax paid or payable by any trustee in his capacity as such may, notwithstanding anything to the contrary contained in the trust deed concerned, be recovered by him
from the assets of the trust;
‘fair market value’, means—
(a) the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market; or
(b) in relation to immovable property on which a bona de farming undertaking is being carried on in the Republic, the amount determined by reducing the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market by 30 per cent;
272
SAIT CompendIum oF TAx LegISLATIon VoLume 1