Information

This barrier is unrelated to the end of the transition period, following the United Kingdom's departure from the EU.

Public ID: PID-GXMZR9

Inconsistent application and withholding of taxes in South Africa is affecting UK exporters and investors

in South Africa

Trade barrier summary

This affects UK businesses and investors doing business with South Africa. Inconsistency and lack of clarity in applying taxes may result in increased costs. This is due to the Income Tax Act 58 of 1962, sections 35A and 64A. A 20% tax applies to any dividend from a business in South Africa to a non-resident, when the shares are listed on any South African exchange. The tax is applied on the dividend's owner. A tax treaty with the UK means reducing this to 5% to 15%. Additional withholding taxes apply to disposable immovable property - consisting of 5% when the seller is an individual, 7.5% for a company, and 10% for a trust.

Sectors affected

  • Financial and professional services

Resolved

No

Date reported

25 September 2020

Last updated

18 December 2020

Public ID

PID-GXMZR9

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