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Zimbabwe ratifies double tax treaty with South Africa
Zimbabwe announced on 14 April that it had ratified the double tax agreement concluded with South Africa (SA) on 4 August 2015 by way of Staturory Insrument 40 of 2016 published in the Official Gazette of 8 April. Taxand South Africa investigates this update.
The treaty will enter into force once ratified by SA and will replace the outdated treaty between SA and then Southern Rhodesia in 1965.
In SA, the new treaty is to apply to normal tax, dividends tax, withholding tax on interest and royalties and the tax on foreign entertainers and sportspersons.
In Zimbabwe it will apply to income tax, nonresident shareholders' tax, capital gains tax and the nonresident tax on fees, royalties and interest.
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The provisions of the new treaty shall appply with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of the second month following the date on which the treaty enters into force and in respect of other taxes, in respect of years of assessment commencing on or after the first day of January following upon which the treaty enters into force.