A resident taxpayer works in South Africa as the director of a subsidiary company that is registered in America and has its head office in America. If the taxpayer is paid a dividend from the holding company in America, is this classified as a foreign div
Author: Graham Walker
Important:
This answer is based on tax law year ending 28 February 2020.
Answer:
Relevant law: Step 1: s 10B of the Income Tax Act No.58 of 1962 (“ITA”). Other resources: • SARS IN 93 version 2. This needs to be applied to the facts of the case. Comment on member’s query: An interesting question which requires additional information to limit the many possible formulations. We don’t have enough facts to offer specific guidance, given the many possible outcomes. The above thoughts may lead you to the correct action. Once you have narrowed the specifics please feel free to communicate further.