Donations Tax and Royalties Withholding Tax Filing Just Got Simpler

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SARS has made it simpler to file Donations Tax and Withholding Tax on Royalties (WTR). You can now submit your declarations online via the SARS Online Query System (SOQS) on their website.

What is WTR?

WTR applies when royalties are paid to a foreign person from a South African source, the tax (15%) must be withheld by the payer, even though the foreign recipient is technically liable.

Royalties include payments for:

• Using intellectual property

• Sharing technical or commercial know-how

• Services based on that expertise.

What you need to do

• Large businesses must email the WTR01 form + proof of payment to: lbqueries@sars.gov.za.

• All others should send the documents to:

  • contactus@sars.gov.za (taxpayers)

  • PCC@sars.gov.za (tax practitioners).

Note: You may qualify for an exemption or reduced rate, check the form carefully.

Bottom line for accountants

Take advantage of the new digital process to ensure smooth, timely submissions for your clients.