Page 62 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Source rules

• Under the current residence-based tax system, the source

of income is relevant in the context of nonresidents to

determine whether an amount will be subject to tax.

• A resident is subject to income tax in South Africa whether

the amount received or accrued to it was derived from a

South African source or not.

• The concept of source is however still important when

determining the tax liability of residents.

• For example, if a resident derives income from a source

outside of South Africa, a rebate may be available to the

resident in respect of foreign tax suffered on that income

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