DO YOU NEED A TAX DIRECTIVE?

What is a Tax Directive?

When tax non-resident individuals, entities or trusts dispose of fixed property in South Africa for consideration exceeding R2 million, a withholding tax (provisional tax) applies and the conveyancing attorney must retain and pay a portion of the sales price to SARS on the seller’s behalf. The percentage to be withheld ranges from 7.5% to 15% and is dependent on the type of seller.

In almost all transactions this withholding amount exceeds the actual liability for tax and we specialise in obtaining Tax Directives from SARS reducing the withholding obligation down to the client’s actual liability.