Czech News - January 1998 - Double Tax Treaty With South Africa

The Treaty was published under No. 7/1998 Coll. Based on Article 5, provision of services in the other state gives rise to a permanent establishment if the services last 6 months in any 12-month period. The Treaty states the maximum rates of the withholding tax as follows:

Dividends: 15%; 5% if paid to a company which holds more than 25% of the payer's capital;
Interest: 0%;
Royalties: 10%.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information on the above, please contact Mr Richard Fletcher by telephone on +420 2 2440 1300 or E-mail directly to richard.g.fletcher@arthurandersen.com