Visual Artist

Double Tax Agreement South Africa And Drc

The Agreement between South Africa and the Democratic Republic of the Congo eliminated double taxation as follows: if income established in the Democratic Republic of the Congo comes from a source outside the Democratic Republic of the Congo that can be taxed in South Africa in accordance with the provisions of this Agreement, the DRC shall exempt such income. In South Africa, subject to the provisions of South African law relating to the deduction of tax payable in South Africa from tax payable in a country other than South Africa (which does not affect the general principle of this Agreement), Congolese tax paid by income established in South Africa for taxable income in the Democratic Republic of the Congo, in accordance with the provisions of this Convention, the taxes due shall be deducted by the South African tax authorities. However, this deduction must not exceed an amount equal to the total income from South African tax. Interest received in a Contracting State and paid to a person resident in the other Contracting State may be taxed in that other State. However, such interest may also be taxed in the Contracting State in which it is earned and in accordance with the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10% of the gross amount of interest; while interest received in the Democratic Republic of the Congo is subject to a withholding tax of 20%, which is twice as high without DBA between the Democratic Republic of the Congo and South Africa. Following the double taxation agreement (DBA) or the tax agreement between the Democratic Republic of Congo (DRC) and Belgium, the DRC had concluded a DBA with South Africa, which entered into force on 18 July 2012. In accordance with section 108(2) of the Income Tax Act 1962 (Act No. 58 of 1962), in conjunction with section 231(4) of the Constitution of the Republic of South Africa 1996 (Act No. 108 of 1996), it is notified that the Convention for the Prevention of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes has been registered. and has been approved by Parliament in accordance with Article 231, paragraph 2, of the Constitution. The agreements between the two tax administrations of two countries are intended to enable administrations to eliminate double taxation. .