Double Taxation Agreement Ireland And South Africa

The agreements between the two tax administrations in two countries are intended to allow administrations to eliminate double taxation. He added: „Ireland has a wide network of global double taxation conventions. The agreements relate to direct taxes which, in the case of Ireland, are income tax, corporation tax and capital gains tax. We are always striving to expand our network of tax agreements and update existing treaties to reflect developments in international trade and international taxation. In Cape Town, Irish Overseas Development Minister Peter Power and South African Finance Minister Pravin Gordhan signed a protocol to update the existing Double Taxation Convention (DBA) between the two countries. The above navigation area can be used to access the texts of the corresponding agreements. Ireland has comprehensive double taxation agreements with 73 countries. An agreement with Ghana is still being ratified and negotiations with Kenya, Kosovo, Oman and Uruguay have been concluded. Agreements generally cover personal income tax, corporate and capital gains tax, as well as general levy. After signing the protocol, Power said: „Tax agreements have a number of advantages for Irish companies wishing to do business abroad. The agreements reduce the possibility of taxation being applied twice and promote the efficiency of cross-border trade. The treaties also help eliminate tax evasion and improve the security of taxpayers and tax authorities in their international transactions. Ireland has ratified the Multilateral Convention on the Implementation of Measures to Prevent BEPS (MLI) in the 2018 Finance Act.

It came into force in Ireland on 1 May 2019. For a full status of all DBAs and protocols, whether they are still under negotiation, they have already been signed but have not been ratified in any of the Member States or are in force, we insert below a status review document. The Double Taxation Conventions (DBAs) and protocols already in force have been divided into two groups to facilitate navigation, i.e. „the protocol signed today updates our existing tax treaty with South Africa,” he said. „It enhances security and improves the business environment for Irish companies that sell products or services to South Africa. The government is committed to doing everything in its power to help Irish companies working in markets around the world, including South Africa. Almost all Irish contracts provide for a zero-source tax on interest paid to a contractor, either unconditionally or only on certain types of interest. The exceptions are contracts with Australia, Chile, Israel and Turkey, which provide for lower but not zero interest rates for interest payments. Many Irish tax agreements also exempt royalties paid by Irish companies from withholding tax. The Minister underlined the Irish government`s commitment to improving economic relations with South Africa. He said That South Africa was an important access point for Ireland`s trade with the rest of Africa.

The bilateral DBA was originally signed in October 1997 and the new protocol is said to improve the conditions for trade between Ireland and South Africa. Power stressed the importance of the protocol for both countries, which will further strengthen bilateral relations.