s35A Withholding Tax on Immovable Property sales by Non-Residents
Paola Dalton
Director Business Development & Innovation driving sustainable financial growth through sales & retention management
Attention All Sellers, Conveyancer and Estate Agents
Article Author: Trevor Dalton Mcom(Tax) CA (SA)
As you are aware?the conveyancer and/estate agent are deemed to be withholding agents in terms of section 35(12) of the Act, and for the purposes of the Tax Administration Act, are obliged to notify a purchaser in writing when a seller is a non-resident for tax purposes and accordingly the said purchaser is obliged to withhold a portion of the payment.
Where a conveyancer or estate agent assisted with the sale of the immovable property, and the said conveyancer or estate agent didn’t notify the purchaser as to the purchaser’s obligations, the conveyancer and/or estate agent are liable to pay SARS, which is limited to the amount of remuneration they received in connection with the sale.
?Tax Governance (Pty) Ltd has been established since 2005 and engaged with SARS on behalf of many corporate and individual clients in matters of dispute resolution and the process of returns submission and tax compliance.
We at Tax Governance would welcome the opportunity to assist yourself to ensure your risks are mitigated by detailed application of the S35A requirements on behalf of the non-residents purchaser and seller’s obligations be they individuals, companies or trusts.
If you would like to engage further please do not hesitate to contact me.
Mailto: [email protected] or Contact: 0827728172
Alternatively should you wish to set up a zoom or teams meeting we would gladly schedule a slot to converse. linkedin.com/in/trevor-dalton-ca-sa-38342428 our website address https://www.taxgov.co.za/