Page 109 - Companies & Dividend Tax
P. 109
CORPORATE RULES
Taxation of foreign income (including foreign
dividends)
• Residents are taxed on their worldwide income and
capital gains. Section 10 and 10B, however, exempt
certain income while section 20 limits losses from
foreign trades to be offset against other RSA trade
income.
Section 6quat rebate
• A distinction must be drawn between the section 6quat
rebate and the section 6quat deduction.
• Section 6quat provides for a rebate against normal
South African tax where foreign taxes have been paid
on income from foreign sources (section 6quat(1), read
with section 6quat(1A) and (1B)).
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