South Africa Delays Withholding Tax on Debt Securities

The implementation of the 15% withholding tax on the interest from South African debt securities has been postponed until January 1 2015.

The tax was foreseen to become effective on March 1 2014. Currently, interest income derived in South Africa is not taxed.

The government’s 2012 budget said the tax would be introduced at a rate of 15%. It is expected that the revised effective date will be published in the Gazette three months before the new effective date.