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2. Tax Treaty Ratification Process. Before a tax treaty can come into force, it has to be ratified by ParliamentRatification can only take place after the signing of the tax treaty In SA, ratification process is done in accordance with S231 of the Constitution read with S108(2) of the Income Ta
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1. Ratification: Tax Treaties with Sudan, Australia Select Committee on Finance
24 June 2008
Presented by Yanga Mputa
Tax Policy Unit : National Treasury
2. 2 Tax Treaty Ratification Process
Before a tax treaty can come into force, it has to be ratified by Parliament
Ratification can only take place after the signing of the tax treaty
In SA, ratification process is done in accordance with S231 of the Constitution read with S108(2) of the Income Tax Act
The tax treaties presented today for ratification constitute what we believe to be the best interest of SA
3. 3 Reasons for SA/Sudan Tax Treaty Economic relations
SA foreign policy into Africa
New tax treaty between South Africa and Sudan was signed on 7 November 2007
4. 4 SA/Sudan Tax Treaty: Trade Flows Exports to Sudan
Exports to Sudan were: R302 million in 2004, R434 million in 2005, R463 million in 2006 and R718 million in 2007
Main exports: machinery, mechanical appliances, plastics, rubber, vehicles
Imports from Sudan
Imports from Sudan were: R5,6 million in 2004, R632 thousand in 2005, R2,5 million in 2006 and R6,9 million in 2007
Main imports: mineral products, machinery, mechanical appliances
5. 5 SA/Sudan Tax Treaty: Investment Flows Level of investment flows between the two countries still minimal
SA Companies Operating in Sudan
PetroSA
Transnet
Global Railway Engineering Consortium of South Africa
MTN-Sudan
6. 6 Reasons for SA/Australia Tax Treaty Protocol to the existing treaty. Tax treaty between South Africa and Australia came into force on 21 December 1999
Proposed changes to the current tax treaty are necessary as a result of key changes to South African domestic tax legislation: Conversion of Secondary Tax on Companies (STC) to a dividend tax at shareholder level
Implementation of the proposed STC conversion is subject to renegotiation of nine tax treaties that have a zero rate withholding tax on dividends
Tax treaty with Australia presented in Parliament today represents one of those treaties
The revised tax treaty also addresses certain aspects that are not present in the old treaty
7. 7 SA/Australia Tax Treaty: Investment Flows Investments by Australia
Total investments by Australia into South Africa increased from R946 million in 2003 to to R2 billion in 2005
Australian investments in South Africa increased significantly over the past decade mainly in the mining and agricultural sectors
Major Australian investors in South Africa include mining company BHP Billiton and mining consultancy company RSG Global
Investments by South Africa
Total investments by South Africa into Australia amounted to R8,5 billion in 2003 and R8,6 billion in 2005
Major South African investors in Australia include Wesbank, Pick n Pay, Woolworths, First Rand, RMB, Kumba Resources, Tiger Brands, Sappi, Murray & Roberts
8. 8 SA/Australia Tax Treaty: Trade Flows Exports to Australia
Exports to Australia were: R7,15 billion in 2004, R9,7 billion in 2005 and R9 billion in 2006
Australia is one of SA largest trading partners
The majority of goods exported to Australia are finished goods and these include high quality motor cars, e.g. BMW , Mercedes Benz and Volkswagen
Imports from Australia
Imports from Australia were: R7,2 billion in 2004, R7,3 billion in 2005 and R9,5 billion in 2006
The majority of goods imported from Australia are primary products such as aluminium and finished goods such as pharmaceuticals
9. 9 Thank You