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Income Tax Act, 1962 (Act 58 of 1962)

Chapter II: The Taxes

Part IVA : Withholding tax on royalties

49B. Levy of withholding tax on royalties

 

(1) There must be levied for the benefit of the National Revenue Fund a tax, to be known as the withholding tax on royalties, calculated at the rate of 15 per cent of the amount of any royalty 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 by or accrued to that foreign person from a source within the Republic in terms of section 9(2)(c), (d), (e) or (f).

[Subsection (1) substituted by section 97(1)(b) of Act No. 31 of 2013 - effective 1 January 2015]

 

(2) For the purposes of this Part, a royalty is deemed to be paid on the earlier of the date on which the royalty is paid or becomes due and payable.

 

(3) The withholding tax on royalties is a final tax.

 

(4) Where a person making payment of a royalty to or for the benefit of a foreign person has withheld an amount as contemplated in section 49E(1), that person must, for the purposes of this Part, be deemed to have paid the amount so withheld to that foreign person.

 

[Section 49B inserted by section 90(1) of Act No. 22 of 2012 - effective 1 July 2013]