The Double Taxation Agreement (“DTA”) between The United Kingdom (“UK”) and South Africa (“SA”) has been enforced since December 2002. In terms of Articles 11,12 and 17 of the DTA interest, royalties and pensions, other than Government pensions, paid to a South African tax resident is only taxable in South Africa meaning HM Revenue & Customs (“HMRC”) do not have taxing rights on these sources of income.
HMRC have issued “Form South Africa-Individual” the purpose of which is to enable SA tax residents to apply under the DTA for relief at source from UK income tax on UK-source pensions, purchased annuities, royalties and interest. The form also provides for a claim to repayment of UK tax in cases where payments of the income have already been made with UK tax taken off.
Please note without the completion and processing of this Form you will be subject to UK tax.
If you need further information please do not hesitate to contact your nearest Moore Stephens office.