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Synthesised text of the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting and the convention between the government of the United Kingdom of Great Britain and Northern Ireland and the government of the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains
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General disclaimer on the Synthesised text document
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This document presents the synthesised text for the application of the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to Taxes on Income and on Capital Gains signed on 4 July 2002, amended by the Protocol signed on 8 November 2010 (the “Convention”), as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by the Government of the United Kingdom of Great Britain and Northern Ireland and by the Republic of South Africa on 7 June 2017 (the “MLI”).
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This document was prepared in consultation with the competent authority of the Republic of South Africa and represents a shared understanding of the modifications made to the Convention by the MLI.
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The document was prepared on the basis of the MLI position of the United Kingdom submitted to the Depositary upon ratification on 29 June 2018 and of the MLI position of the Republic of South Africa submitted to the Depositary upon ratification on 30 September 2022. These MLI positions are subject to modifications as provided in the MLI. Modifications made to MLI positions could modify the effects of the MLI on the Convention.
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The authentic legal texts of the Convention and the MLI take precedence and remain the legal texts applicable.
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The provisions of the MLI that are applicable with respect to the provisions of the Convention are included in boxes throughout the text of this document in the context of the relevant provisions of the Convention. The boxes containing the provisions of the MLI have generally been inserted in accordance with the ordering of the provisions of the OECD Model Tax Convention.
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Changes to the text of the provisions of the MLI have been made to conform with the terminology used in the MLI to the terminology used in the Convention (such as “Covered Tax Agreement” and “Convention”, “Contracting Jurisdictions” and “Contracting States”), to ease the comprehension of the provisions of the MLI. The changes in terminology are intended to increase the readability of the document and are not intended to change the substance of the provisions of the MLI. Similarly, changes have been made to parts of provisions of the MLI that describe existing provisions of the Convention. Descriptive language has been replaced by legal references of the existing provisions to ease the readability.
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In all cases, references made to the provisions of the Convention or to the Convention must be understood as referring to the Convention as modified by the provisions of the MLI, provided such provisions of the MLI have taken effect.
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References
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The authentic legal texts of the MLI and the Convention and Protocol can be found on the following links:
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[The MLI](http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf)
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[In the United Kingdom 2002](https://www.legislation.gov.uk/uksi/2002/3138/contents/made)
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[In the United Kingdom 2011](https://www.legislation.gov.uk/uksi/2011/2441/contents/made)
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[In the Republic of South Africa](https://www.sars.gov.za/wp-content/uploads/Legal/Agreements/LAPD-IntA-DTA-2012-80-DTA-United-Kingdom-GG-24335.pdf)
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The MLI position of the United Kingdom submitted to the Depositary upon ratification on 29 June 2018 and of the MLI position of the Republic of South Africa submitted to the Depositary upon ratification on 30 September 2022 and of the MLI position can be found on the MLI Depositary (OECD) webpage [Signatories and Parties to the MLI](http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf).
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The provisions of the MLI applicable to the Convention do not take effect on the same dates as the original provisions of the Convention. Each of the provisions of the MLI could take effect on different dates, depending on the types of taxes involved (taxes withheld at source or other taxes levied) and on the choices made by the Republic of South Africa and the United Kingdom of Great Britain and Northern Ireland in their MLI positions.
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Dates of the deposit of instruments of ratification, acceptance or approval: 29 June 2018 for the United Kingdom and 30 September 2022 for the Republic of South Africa.
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Entry into force of the MLI: 1 October 2018 for the United Kingdom and 1 January 2023 for the Republic of South Africa.
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In accordance with paragraph 1 of Article 35 of the MLI, the provisions of the MLI (other than Article 16 Mutual Agreement Procedure) have effect with respect to this Convention:
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- with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2023;
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- in the United Kingdom, from 1 April 2023 for Corporation Tax and from 6 April for Income Tax and Capital Gains Tax; and
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- with respect to all other taxes levied by the Republic of South Africa, for taxes levied with respect to taxable periods beginning on or after 1 July 2023.
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In accordance with paragraph 4 of Article 35 of the MLI, Article 16 (Mutual Agreement Procedure) of the MLI has effect with respect to this Convention for a case presented to the competent authority of a Contracting State on or after 1 January 2023, except for cases that were not eligible to be presented as of that date under this Convention prior to its modification by the MLI, without regard to the taxable period to which the case relates.
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Convention between the government of the Republic of South Africa and the government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains
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Preamble
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The Government of the Republic of South Africa and the Government of the United Kingdom of Great Britain and Northern Ireland.
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Desiring to promote and strengthen the economic relations between the two countries [REPLACED by paragraph 1 and paragraph 3 of Article 6 of the MLI] [by the conclusion of a new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains,]
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The following paragraph 1 and paragraph 3 of Article 6 of the MLI replace the text referring to an intent to eliminate double taxation in the preamble of this Convention:
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ARTICLE 6 OF THE MLI — PURPOSE OF A COVERED TAX AGREEMENT
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Intending to eliminate double taxation with respect to the taxes covered by [this Convention] without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in [the Convention] for the indirect benefit of residents of third jurisdictions),
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Desiring to further develop their economic relationship and to enhance their co-operation in tax matters,
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Have agreed as follows: