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Income Tax Act, 1962 (Act No. 58 of 1962)

Chapter II : The Taxes

Part IVA : Withholding tax on royalties

49C. Liability for tax


(1) A foreign person to which a royalty is paid is liable for the withholding tax on royalties to the extent that the royalty is regarded as having been received by or accrued to that foreign person from a source within the Republic in terms of section 9(2)(c), (d), (e) or (f).


(2)        Any amount of withholding tax on royalties that is—

(a)        withheld as contemplated in section 49E(1); and

(b)        paid as contemplated in section 49F(1),

is a payment made on behalf of the foreign person to which the royalty is paid in respect of that foreign person's liability under subsection (1).


[Section 49C inserted by section 80(1) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 July 2013]