Withholding taxes and foreign tax relief
Over the last few years, increasingly more South African companies are expanding their businesses, especially into Africa. However, the effects of withholding tax (‘WHT’) or other taxes on the profit of the company is not usually one of the things thought of, until it is too late!
WHT is a tax levied on the payer of an item of income and could, if not properly planned, have a significant impact on company profit levels.
We recommend that before your company starts doing business, that you seek professional tax advice on the risks and possible solutions involved and how your company will be affected.
How can BDO help you
We at BDO keep up to date with the changes in tax legislation, we have extensive practical knowledge of the WHT and foreign tax relief regime in South Africa. With BDO offices situated in the majority of African countries, and the rest of the world we have in-country experts that can assist with domestic legislation and practical knowledge.
BDO can assist you from the planning phase to the implementation to make sure that that your expansion into Africa and/or the rest of the world is as easy and painless as possible.
By taking the time to plan the expansion of your business and with the right partner in BDO, foreign tax relief and WHT should not be the obstacle to your expansion plans.