15 June 2015

Revised Mauritius – South Africa Treaty. Has life changed?

What benefit a treaty is to a legal entity, individuals excluded, relies heavily on this interpretation of this criterion that can tilt the balance, if not shift it altogether. This treaty, however, does not only dilute the other advantages in terms of the withholding tax benefits, but more importantly, creates a veil of uncertainty that now circles the interpretation of tax residency of legal entities where they are considered as dual tax residents. 

1 comment:

Unknown said...

In the matter of the dual residency clause. the uncertainty based on the 'administrative discretion' does not actually change anything. I am wondering Sir, what is the actual purpose of such scenario as the the South African Authorities are still abiding the 'Place of Effective Management' ground rule.

What are your views?