47A. Definitions
Category: PART IIIA – Taxation of foreign entertainers and sportspersons (ITA)
“Entertainer or sportsperson” definition of section 47A of ITA
For purposes of this Part –
(a) ‘entertainer or sportsperson’ includes any person who for reward –
(i) performs any activity as a theatre, motion picture, radio or television artiste or a musician;
(ii) takes part in any type of sport; or
(iii) takes part in any other activity which is usually regarded as of an entertainment character;
“Specified activity” definition of section 47A of ITA
(b) ‘specified activity’ means any personal activity exercised in the Republic or to be exercised by a person as an entertainer or sportsperson. whether alone or with any other person or persons.
Section 47B (ITA) – Imposition of tax
47B. Imposition of tax
(1) Subject to subsection (3), there must be levied and paid for the benefit of the National Revenue Fund a tax, to be known as the tax on foreign entertainers and sportspersons, in respect of any amount received by or accrued to any person who is not a resident (in this Part referred to as the ‘taxpayer’) in respect of any specified activity exercised or to be exercised by that person or any other person who is not a resident.
(2)
(a) The tax on foreign entertainers and sportspersons is a final tax and is levied-
(i) at a rate of 15 per cent; or
(ii) at such a rate as the Minister may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, with effect from a date mentioned in that Announcement,
on all amounts received by or accrued to a taxpayer as contemplated in subsection (1).
(b) If the Minister makes an announcement contemplated in paragraph (a)(ii), that rate comes into effect on the date determined by the Minister in that announcement and continues to apply for a period of 12 months from that date subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.
[Subsection (2) substituted by section 56 of Act 17 of 2017 effective on 18 December 2017]
(3) Subsection (1) does not apply in respect of any person who is not a resident, if that person –
(a) is an employee of an employer who is a resident; and
(b) is physically present in the Republic for a period or periods exceeding 183 full days in aggregate during any 12 month period commencing or ending during the year of assessment in which the specified activity is exercised.
Section 47D – Withholding of amounts of tax
47D. Withholding of amounts of tax
(1) Any resident who is liable to pay to a taxpayer any amount contemplated in section 47B(1) must deduct or withhold from that payment the amount of tax for which the taxpayer is liable under that section in respect of that amount.
(2) A taxpayer from whom an amount has been deducted or withheld in terms of this section is deemed to have received the amount so deducted or withheld.
Section 47E – Payment of amounts of tax deducted or withheld
47E. Payment of amounts of tax deducted or withheld
(1) A resident must pay any amount deducted or withheld in terms of section 47D to the Commissioner before the end of the month following the month during which that amount was so deducted or withheld.
(2) The payment contemplated in subsection (1) is a payment made on behalf of the taxpayer in respect of his or her liability under section 47B.
Section 47F – Submission of return
47F. Submission of return
(1) A taxpayer must, together with the payment contemplated in section 47C(1), submit to the Commissioner a return.
(2) A resident who pays to the Commissioner any amount in terms of section 47E, must together with that payment submit to the Commissioner a return.
Section 47G (ITA) – Personal liability of resident
47G. Personal liability of resident
(1) A resident who –
(a) fails to deduct or withhold an amount of tax in terms of section 47D from any payment made to a taxpayer: or
(b) deducts or withholds an amount of tax but fails to pay that amount over in terms of section 47E,
is personally liable for payment of that amount of tax in accordance with Part A of Chapter 10 of the Tax Administration Act.
(2) ……….
(3) Subsection (1)(a) does not apply where the taxpayer has in terms of section 47C(1) paid to the Commissioner the amount of tax payable under this Part in respect of the payment from which the resident has so failed to deduct or withhold the tax.
47H. . . . . . .
47I. . . . . . .
[Wording of section 47I prior to amendment by Act 28 of 2011 applicable to the extent it relates to interest]
Section 47J – Currency of payments made to Commissioner
47J. Currency of payments made to Commissioner
If an amount deducted or withheld by a resident in terms of section 47D is denominated in any currency other than the currency of the Republic, the amount so deducted or withheld and paid to the Commissioner must be translated to the currency of the Republic at the spot rate on the date on which that amount was so deducted or withheld.
Section 47K (ITA) – Notifications of specified activity
47K. Notification of specified activity
Any resident who is primarily responsible for founding, organising, or facilitating a specified activity in the Republic and who will be rewarded directly or indirectly for that function of founding, organising or facilitating must, in the manner and form prescribed by the Commissioner –
(a) notify the Commissioner of that specified activity within 14 days after the agreement relating to that founding, organising or facilitating of that specified activity has been concluded; and
(b) provide to the Commissioner such other details relating thereto as may be required by the Commissioner.