Key Benefits:
South African implementing rules tax agreement Netherlands-South Africa
The Secretary of State for Finance,
Decision:
By placing in the Official Gazette the following to inform interested residents of the Netherlands: Scheme for the reduction or exemption of South African taxes on dividends, interest, royalties and annuities, Enjoyed by residents of the Netherlands.
Agreement concluded on 15 March 1971 between the Netherlands and South Africa on the avoidance of double taxation and the prevention of tax on taxes on income (Trb. 1971, No 72), the inhabitants of the Netherlands may, inter alia, borrow the following claims, arranged in the following articles of the Agreement listed below:
a. Limits up to 15% of the South African tax on dividends (including distributions on profit-sharing bonds), paid by a person resident in South Africa (Article 10 (b) (b));
b. further reduction to 5% of South African tax on dividends, if the genieter of dividends is a Dutch body that immediately or indirectly at least 25 percent of the total number of votes in the body that the dividends paid, control (Article 10, second paragraph, subparagraph (a));
c. Limit to 10% of the South African Tax on Interest, coming from South Africa (Article 11, second paragraph);
d. total exemption from South Africa's tax on royalties from South Africa (Article 12, first paragraph);
e. total exemption from the South African tax on pensions paid from South Africa (Article 19), with the exception of public pensions (Article 20, first paragraph);
f. Overall exemption from the South African tax on annuities, coming from South Africa (Article 23). The restrictions, reductions and exemptions referred to in points (a) to (d) of this Article shall not apply where the person's genius of the dividends, interest or royalties in South Africa has a permanent establishment, and the equity holdings in respect of which the dividends are paid, the claim under which the interest is due or the right or the case under which the royalties are payable belongs to the assets of that fixed establishment (Article 10 (6) and Article 11 (4) and Article 12 (4) respectively).
To execute Article 1 The South African side has been affected by the following legislation:
a. Dividends, interest, royalty, pensions and annuities
1. In order to obtain a reduction or exemption from South African taxes on dividends, interest, royalties, pensions and annuities, the person concerned shall complete a form IT 26 in triplicate, and to the relevant heading (s) on the back of the three copies of the product concerned, to be entered in the relevant heading (s) on the back of the three copies of the product concerned, and in particular the information on income which is subject to a reduction or exemption from South African taxes form.
2. For the in Article 1 such reductions or exemptions from tax shall, in principle, keep the application for reimbursement of the South African tax levied in breach of the provisions of the Agreement. However, if the person concerned does not expect any changes in the circumstances set out in the form for the next three years in respect of the revenue declared, he may, on the form indicated in the form, be Request to receive future payments of the proceeds without withholding South African taxes or deductions from South African taxes not exceeding the rate laid down in the Agreement.
(3) After completing and signing the three copies of the form, they shall be sent by the person concerned to the Head of the Unit of the Tax Office within whose territory he is resident or established. The abovementioned head shall indicate on all three copies the date on which the form has been received from him, and then provide the two copies in the English language of the form of a certificate, bearing in mind that the person concerned has been informed of the Resident of the Netherlands. He then sends those copies to the competent South African tax authority. The third copy, in the Dutch language, shall be retained by him.
b. Deadline for submission of the forms
(1) In accordance with Part II of the Protocol to the Agreement, a request for refund of tax on form IT 26 must be lodged with the competent tax authority in South Arika within a period of three years after the date of the entry into force of the Protocol. end of the calendar year in which the South African tax on the income shown on the form is levied.
2. As a date on which a form IT 26 is submitted will be the date on which it has been received by the competent head of the Tax Service Unit.
c. Availability of forms Copies of the form IT 26 are available on request, in the Netherlands to the Tax Service/Centre for Facilities Services, Division Logistics Reprographic Center, Postbus 1314, 7301 BN Apeldoorn, and in South Africa at The Commissioner for Inland Revenue, P.O. Box 402, Pretoria 0001.
The Order of the Secretary of State for Finance of 12 January 1973, No B72/30370 (Stcrt. of 15 January 1973, No 10), as amended by the Decision of 11 June 1986, No 086-1352 (Stcrt. of 12 June 1986, No 110), is hereby repealed.
1 This arrangement can be cited as: South African implementing rules Tax agreement Netherlands-South Africa.
2 It shall enter into force with effect from 1 January 1991.
3 It shall be taken into account in accordance with the provisions of Article 2 (b) , application:
a. Dividends and interest: on yields paid or payable on or after 1 January 1968;
(b) for other revenue: on revenue accruing from tax years beginning or being caught on or after 1 January 1968.
State Secretary
of Finance,M. J. J. van Amelsvoort
