South Africa issues draft guidance on determining entity residence

The South African Revenue Service has released draft guidance to assist in determining whether an entity has an place of effective management in South Africa so as to be considered a resident of the Republic.

The guidance concludes that company’s place of effective management is the place where key management and commercial decisions made, that a company can have only one place of effective management at any one time, that determinations depend on all facts and circumstances, and that the place of effective management test is one of substance over form.

The due date for comments is July 31.

See:

• Draft Issue 2 of IN 6 – Resident – place of effective management (companies)