On 18 March 2020, the South African Revenue Service (SARS) issued two draft interpretation notes regarding the withholding tax (WHT) on interest and royalties for public comments until 29 May 2020.
The draft interpretation note on withholding tax on interest provides instruction of how to interpret and apply sections 50A to 50H relating to withholding tax on interest.
The draft interpretation note on withholding tax on royalties provides guidance on the interpretation and application of sections 49A to 49H relating to withholding tax on royalties. The tax authority stated that a draft note was previously issued on Withholding Tax on Royalties, however, due to significant changes and alignment it is reissued for a second round of comment.
