William is an experienced Namibian senior civil engineer. Between 2019 to 2022, he worked in South...

  

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William is an experienced Namibian senior civil engineer. Between 2019 to 2022, he worked in South Africa on behalf of his employer overseeing the building of a major bridge. His employer is a Namibian company, Namtech Ltd ('Namtech'), and its day-to- day operations are conducted in Namibia. Namtech has no fixed branch in South Africa through which its business is conducted, and Namtech was responsible for paying William's salary whilst working in South Africa. There is a double-taxation agreement (DTA) in place between South Africa and Namibia. During 2019 to 2022, William travelled frequently between Namibia and South Africa. William was, however, present in South Africa for the number of days listed below for the respective accompanying twelve-month periods: 2018: 0 days 2019: 162 days 2020: 183 days 2021: 183 days 2022: 175 days 2023: 0 days During 2019, William also bought a house in Gauteng but decided to sell it once he returned in Namibia after the bridge was completed in 2022. In 2023, the house was sold to a South African couple. Discuss whether William will be subject to normal tax on his salary earned in South Africa during 2019 to 2022. (22 marks) Explain the tax payable, including the rate at which it is levied, resulting from the sale of an immovable property in 2023 by William. (4 marks) William is an experienced Namibian senior civil engineer. Between 2019 to 2022, he worked in South Africa on behalf of his employer overseeing the building of a major bridge. His employer is a Namibian company, Namtech Ltd ('Namtech'), and its day-to- day operations are conducted in Namibia. Namtech has no fixed branch in South Africa through which its business is conducted, and Namtech was responsible for paying William's salary whilst working in South Africa. There is a double-taxation agreement (DTA) in place between South Africa and Namibia. During 2019 to 2022, William travelled frequently between Namibia and South Africa. William was, however, present in South Africa for the number of days listed below for the respective accompanying twelve-month periods: 2018: 0 days 2019: 162 days 2020: 183 days 2021: 183 days 2022: 175 days 2023: 0 days During 2019, William also bought a house in Gauteng but decided to sell it once he returned in Namibia after the bridge was completed in 2022. In 2023, the house was sold to a South African couple. Discuss whether William will be subject to normal tax on his salary earned in South Africa during 2019 to 2022. (22 marks) Explain the tax payable, including the rate at which it is levied, resulting from the sale of an immovable property in 2023 by William. (4 marks)

Answer rating: 100% (QA)

Under the South AfricaNamibia Double Tax Treaty DTA William will be subject to normal tax on his salary earned in South Africa during 2019 to 2022 onl... View the full answer