Specialising in tax and exchange control, Johan spent time with PwC in the UK, the financial capital of the globe, and on his return spent 3 years with PwC Cape Town in the Corporate International Tax department before joining STBB as a candidate attorney in 2011. Johan practices within the Corporate Commercial department and has extensive commercial drafting experience with a specific focus on business acquisitions, going-concern transactions and advises on tax aspects of commercial and property-related transactions. Since 2015 Johan heads the Non-Resident practice within STBB. His expert services range from assisting foreign investors in remitting their proceeds from fixed property out of South Africa and drafting and regularising loan agreements through the SARB to obtaining Tax Directives and various types of Tax Clearance Certificates from SARS. As an admitted attorney, conveyancer and registered tax practitioner, Johan’s skill set makes him an invaluable asset in advising and assisting STBB’s diverse clients.

Thought of the Week | Section 35A withholding tax on non-residents selling immovable property

A recent amendment to the Income Tax Act will treat the advance payment, a withholding tax of 5%, 7.5% or 10% of the sale proceeds required where a non-resident sells immovable property, as a final payment in certain circumstances.

It works as follows: If the advance payment is greater than the taxpayer’s actual liability, SARS may retain this whole advance payment as a final payment of the assessed tax due, should the Taxpayer fail to submit an income tax return within 12 months after the year-end of the year in which the property was transferred.

Non-resident sellers are therefore advised to either apply for a tax directive when selling their properties or to ensure that they file their tax returns within the allowed time period to ensure that they can claim the refund due to them following the possible overpayment resulting from the withholding tax being applied.

For assistance, contact our Tax Department