Acts Online
GT Shield

Income Tax Act, 1962 (Act 58 of 1962)

Chapter II: The Taxes

Part IVA : Withholding tax on royalties

49D. Exemption from withholding tax on royalties



A foreign person is exempt from the withholding tax on royalties if—

[Words preceding paragraph (a) substituted by section 68(a) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

(a) that foreign person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the royalty is paid; or
(b) the property in respect of which that royalty is paid is effectively connected with a permanent establishment of that foreign person in the Republic if that foreign person is registered as a taxpayer in terms of Chapter 3 of the Tax Administration Act; or

[Paragraph (b) substituted by section 68(b) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

(c) that royalty is paid by a headquarter company in respect of the granting of the use or right of use of or permission to use intellectual property as defined in section 23I to which section 31 does not apply as a result of the exclusions contained in section 31(5)(c) or (d).


[Section 49D amended by section 60(1) of Act No. 43 of 2014 - deemed to have come into operation on 1 July 2013]