A local company deals with a foreign but the local company is not withholding any tax. Is there any obligation for the local company to report this to SARS and if so how can they report?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We accept that the local company is a company with its place of effective management in the RSA and that the foreign (company or otherwise) is a person deemed to be exclusively a resident of another country (or not resident in the RSA). We don't know what 'deals with' means. The RSA has not yet introduced a withholding tax on services. In order to comment or provide further guidance, we need to know what the nature of the amounts are.