My client is an International lawyer and currently works for the New Development Bank (NDB) in Shanghai, China. The Minister of International Relations and Cooperation has ito s5(3) of the Diplomatic Immunities and Privileges Act (DIP) recognised the NDB
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
For purposes of the guidance that follows it was accepted that the individual, an international lawyer, is resident in the RSA and not exclusively deemed to be resident in a treaty country.
If the services are rendered in the RSA, section 10(1)(c) is applicable it provides an exemption in respect of salary and emoluments, (in this instance probably items (iv) – (vi)) of the Income Tax Act. It generally then applies to “any salary and emoluments payable to any subject of a foreign state” who is either temporarily employed in the RSA or not ordinarily resident in the RSA. The other requirement is that “the exemption of such salary and emoluments is authorized by an agreement entered into by the governments of such foreign state” or the relevant institution and the RSA. If the lawyer is a resident of the RSA this would not be available.
We agree that Article 34(b) of provides for an exemption. It doesn’t refer to the resident status or place where the services are rendered by the “Bank to Directors, alternates, officers or employees of the Bank, including experts performing missions for the Bank.
We suggest that the amount is then declared under the heading:
“Amounts Received/Accrued Considered Non - Taxable – Rands only, no cents (Excluding amounts received / accrued as a beneficiary of a trust(s), or deemed to have accrued in terms of s7)” under the heading “Other” and provide, in the “Description Relating to Other”, the detail (the reference to the Government Gazette and Article 34.