South Africa: Withholding tax on interest implemented
The implementation of the 15% withholding tax on interest from South African debt securities has been approved by the South African Government with effective date
1 March 2015
This is further to our Taxflash T13096, dated 8 November 2013, in which the tax was foreseen to be effective on 1 January 2015.
Background
The 2012 budget, announced by the South African Ministry of Finance on 22 February 2012, included the implementation of a withholding tax on interest at the increased rate of 15%. The implementation was initially foreseen for 1 January 2013 and has already been postponed several times.
Impact on customers
We are still reviewing the impacts with our local depository and will provide customers with further details as soon as these are available.
Further information
For further information, customers may contact the Clearstream Banking1 Tax Help Desk.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.