SARS Foreign Tax Credits 2014
<h2>The South African Revenue Service Foreign Tax Credits 2014</h2>
Foreign Tax Credits in South Africa
Foreign tax credits are only given where a South African tax resident is taxed on income that has already been taxed in another country under a source principle and where any double tax agreement between South Africa and that other country allows that country to tax the income.
We will therefore not give tax credits where we have the right to first collect tax on income. This is pretty standard in all tax systems internationally.
The amount of credit must be claimed in an individual’s income tax return and the amount of credit given is limited to tax on the income being taxed twice. This ensures that tax credits can never be claimed against income that South Africa has the exclusive taxing right on.
If you have any questions relating to these exemptions / deductions please contact us on 011 447 8823 Today to speak to a consultant for FREE.