Page 99 - Companies & Dividend Tax

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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