Page 80 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Source of royalty income and know-how payments (ss

9(2)( c ), 9(2)( d ), 9(2)( e ) and 9(2)( f) )

• A royalty refers to any amount that is received or accrues in respect

of the use, right of use or permission to use intellectual property as
listed in s 23I.

• This definition of intellectual property includes patents, designs,
trademarks and copyrights as defined in the relevant South African

legislation as well as similar foreign legislation.

• Intellectual property also extends to any property or right of a

similar nature and knowledge connected to the use of these items

(definition of ‘intellectual property’ in s 23I(1)). Similar to interest
income, royalty income may be from a South African source based

on l

• the residence of the person paying the royalty l

• the place where the intellectual property is used or may be used.

80