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Fiscal Representative in South Africa

Fiscal Representative in South Africa

A fiscal representative in South Africa is an appointed third party who will act on behalf of a taxpayer entity and it is duly registered with the authorities for this purpose.

Investors interested in company formation in South Africa can resort to this solution when they cannot be present in the country at needed times in order to ensure the mandatory submissions to the tax authorities.

A company can have one or more representatives and as needed, our lawyers in South Africa can assist with this type of service.

Who needs a fiscal representative in South Africa?

A non-resident company or individual who will be conducting business activities that are subject to VAT is required to appoint such a representative. In this case, the non-resident who wishes to register as a VAT vendor in the country will appoint a fiscal representative in South Africa.

In most cases, the representative will be a South African natural person who will provide certain personal information to the authorities, including their bank account details. One situation in which the representative can be a foreigner is when the non-resident will be offering electronic services.

A locally registered company in South Africa can also appoint a fiscal representative. As previously stated, there are certain advantages to doing so, as summarized below by our South African lawyers:

  • The company makes sure that it is duly registered for VAT purposes in South Africa;
  • A fiscal representative in South Africa is informed and accustomed to the VAT registration procedures and all the needed submissions so that this step can take place in a timely manner;
  • The company will ensure the proper submission of its returns to the authorities;
  • The fiscal representative can answer questions and provide the authorities with clarifications in due course, as may be required to avoid unnecessary penalties.

How can a taxpayer appoint a South African fiscal representative?

The registration of a representative is done with the South African Revenue Service. The following details are provided as part of the application process:

  • The details of the company making the appointment (including the name, type, tax number, copy of the Certificate of Incorporation, and others);
  • The representative‚Äôs contact details (such as the name, telephone number, a copy of his/her ID or passport);
  • Proof of residential address and a recent photograph taken according to the instructions of the South African Revenue Service;
  • The power of attorney through which the fiscal representative in South Africa is appointed, indicating the capacity in which he or she will act.

The authorities may require additional documents. When you apply to register a fiscal representative in South Africa with our help, our team will submit a full list of documents, as needed.

Taxation matters in South Africa

Companies in South Africa need to observe a number of corporate taxes. A fiscal representative will make sure that the business entity remains compliant in terms of tax filing payment, and others. Our tax lawyers in South Africa summarize the most important tax issues below:

  • the corporate income tax with a rate of 27%;
  • the value added tax, with a rate of 15%;
  • the reduced value-added tax rate which is 0% for certain types of goods and services;
  • taxpayers making supplies of more than ZAR 1 million per year need to register for VAT purposes, which can be aided by a fiscal representative.

In addition to services related to fiscal and company matters, our lawyers can also answer questions related to immigration to South Africa, or residency in South Africa.

Contact our law firm in South Africa if you need more information about the use of a fiscal representative in SA.