49D.    Exemption from withholding tax on royalties

 

A foreign person is exempt from the withholding tax on royalties if-

[Words preceding paragraph (a) substituted by section 68 of Act 25 of 2015 effective on 8 January 2016]

 

(a)     that foreign person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the royalty is paid; or

 

(b)     the property in respect of which that royalty is paid is effectively connected with a permanent establishment of that foreign person in the Republic if that foreign person is registered as a taxpayer in terms of Chapter 3 of the Tax Administration Act;

[Paragraph (b) substituted by section 68(b) of Act 25 of 2015 and by section 38(1)(a) of Act 17 of 2023 with effect 1 March, 2024 and applicable in respect of royalties that are received by or accrues to a trust that is resident on or after that date]

 

(c)     that royalty is paid by a headquarter company in respect of the granting of the use or right of use of or permission to use intellectual property as defined in section 23I to which section 31 does not apply as a result of the exclusions contained in section 31(5)(c) or (d); or

[Paragraph (c) substituted by section 38(1)(b) of Act 17 of 2023 with effect 1 March, 2024 and applicable in respect of royalties that are received by or accrues to a trust that is resident on or after that date]

 

(d)     that royalty is received by or accrued to a trust that is a resident and is then paid to a beneficiary of that trust as a distribution by that trust.

[Paragraph (d) added by section 38(1)(c) of Act 17 of 2023 with effect 1 March, 2024 and applicable in respect of royalties that are received by or accrues to a trust that is resident on or after that date]

[Section 49D inserted by section 80 of Act 22 of 2012, substituted by section 60 of Act 43 of 2014 effective on 1 July 2013]