South African and multinational businesses operating in the larger African continent were elated by the introduction in 2011 of the section 6quin relief for withholding taxes suffered despite the treaty provisions preventing same.
The elation, however, may be short lived! After offering much welcomed relief and promoting the gateway to Africa initiative for a mere 4 odd years, it is currently proposed that the relief be withdrawn.
While several commentators have pleaded with Treasury not to withdraw the relief, we are yet to see whether or not parliament will allow the relief or some remnants of it to stay.
In the absence of the section 6quin relief, taxpayers who have relied thereon to date will have no choice but to rely, in the alternative, on the Mutual Agreement Procedure (“MAP”) in double tax treaties to get their own back or alternatively, to take erroneous withholding taxes up with foreign revenue authorities directly.
Our team includes highly experienced and well qualified tax professionals, lawyers and charted accountants who have deep expertise on MAP’s and have assisted several taxpayers in claiming back incorrectly withheld taxes.
Contact us for an appointment.[button url=”http://taxconsulting.co.za/index1.php/contact-us/” target=”” size=”small” style=”black” icon=”” popup=”” title=””]Contact Us[/button]