Writing in the November De Rebus, Barry Ger first recaps the withholding tax provisions as contained in Section 35 A of the Income Tax Act and then analyses the meaning of resident for tax purposes in the case of individuals. In terms of the definition of 'resident' in the South African Income Tax Act 58 of 1962 (the Act), an individual will be a South African resident for income tax purposes if:
- he is ordinarily resident in South Africa, or
- such individual is physically present in South Africa for a prescribed period of time.
Other aspects of taxation are also looked at, such as double taxation agreement exceptions (i.e., tax treaties that South Africa concludes with foreign countries to regulate conflicting tax laws). The meaning of resident for tax purposes in the case of corporate entities and trusts is also looked at. He ends off by suggesting a number of practical steps that conveyancers can take to avoid the risk of liability for the withholding of tax.