06.14.12

Seychelles-South Africa DTA Protocol comes into effect

Posted in Double Taxation Agreements, International relations at 3:50 pm by Robert Klien

It has been announced that the protocol to the existing double taxation agreement (DTA) between the Seychelles and South Africa has been ratified and went into effect on May 15, 2012.

This protocol was signed on April 4, 2011 to update the double taxation agreement. It reflects the introduction of the South African dividends tax, which has replaced the secondary tax on companies from April 1, 2012, and is being levied at a rate of 15% on shareholders.

However, for residents of the Seychelles receiving dividends from South African companies that rate will be 5% of the gross amount of the dividends if the beneficial owner is a Seychelles company which holds at least 10% of the capital of the company paying the dividends; or 10% of the gross amount of the dividends in all other cases.

Also, the protocol incorporates the internationally-agreed standard for the exchange of information for tax purposes into the existing DTA.

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