I have a medical specialist as a client. He is a VAT registered Vendor, in private practice, operating as a sole proprietor (in his own name). He went to Canada for 2 months (from mid Dec to start of Febr) to locum there as medical specialist at a hospita
Important:
This answer is based on tax law for the tax year ending 28 February 2019.
Answer:
Value-Added tax
We accept that this is in relation to employment accepted by the individual in carrying on an enterprise carried on by him independently of the employer or concern by whom the amount of remuneration is paid or payable. As such, because the services are physically rendered elsewhere than in the RSA, the rate of zero percent will apply, if section 11(3) of the Act is observed. This is in terms of section 11(2)(k) of the Value-Added Tax Act.
Income Tax
In terms of the treaty between Canada and the RSA, paragraph 2 of Article 14, the term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. It then depends on whether the person, the medical specialist, “has or had a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities.” The other contracting state being Canada as the individual is a resident of the RSA. The inclusion is in RSA gross income, if no fixed base is available as mentioned above.
We accept that, as a locum, the individual is not deriving salaries, wages and other remuneration in respect of an employment.