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

Chapter II : The Taxes

Part IVB : Withholding tax on interest

50B. Levy of withholding tax on interest


(1) There must be levied for the benefit 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 benefit 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 final tax.


(4) Where a person making payment of any amount of interest to or for the benefit 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.


[Section 50B inserted by section 98(1) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013) - effective 1 March 2015 (substituted by section 125 of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]