sa, australia sign tax agreement
31 March 2008

South Africa and Australia signed an amendment to the tax treaty between the two countries.  Acting finance minister Geraldine Fraser-Moleketi and Australian high commissioner Phillip Green signed the document in Pretoria.

"The purpose of the tax treaty is to provide certainty with respect to taxation for investment in our two countries. The current tax treaty between South Africa and Australia came into effect in December 1999. The proposed amendment of the current tax is necessary as a result of a change in South Africa's domestic tax legislation," said Fraser-Moleketi.

The amendment to the treaty relates to the conversion of secondary tax on companies to shareholder dividend tax.

"Today (31 March 2008), marks the signing of the first tax treaty. Negotiations to amend other eight treaties are at an advanced stage. The conversion from secondary tax on companies will provide an overall benefit to Australian investors," she said.

Currently the tax on dividends falls on the company distributing the profits. She added that over the years, South African exports to Australia had increased to R9-billion by 2006.

Green said he was "delighted" to strengthen the "very strong bilateral relationship" between the countries.

Sapa , http://business.iafrica.com