South African tax
Looking to do business in South Africa?
We have Registered Tax Practitioners to assist with queries on South African tax and with the submission of tax returns and audits.
Salient features of South African tax
- Company income tax rate: 28%
- Dividends tax: 20%
- Value Added Tax (VAT) rate: 14%
- (Businesses with Turnover of over R1 million)
- Interest withholding tax rates: 15%
- Royalty withholding tax rates: 15%
Non-residents of South Africa are subject to South African tax on income that is derived from a source within or deemed to be within South Africa. If the activity of a non-resident creates a Permanent Establishment (PE) in South Africa, that company will be liable for South African tax at a rate of 28% in respect of its taxable income, which is essentially the income attributable to such PE
Expanding beyond South Africa
Let us assist with your endeavors as you look to new markets. Understanding whether you will be deemed to have a Permanent Establishment (PE) in that country will affect compliance activity and cost. Likewise the existence of a Double Taxation Agreement (DTA) with South Africa will impact on whether you will pay tax in both countries or be able to deduct foreign tax paid against South African Tax.