Amendment Excludes Foreign Subsidiaries from “Resident” Definition, Eases VAT Burden for South African Companies

• The definition of resident of the Republic was linked to the Income Tax Act.
• Previously, foreign subsidiaries managed in the Republic were not eligible for zero-rating provisions.
• These subsidiaries could not register as vendors to reclaim VAT, leading to extra costs.
• The amendment excludes entities managed in the Republic but not conducting business there from being considered residents.

Source: sars.gov.za

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.