The Double Taxation Relief (Taxes on Income)(South Africa) Order 2002

PART II EXCHANGE OF NOTES

London

4th July 2002

Excellency

I have the honour to refer to 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 which has been signed today and to make on behalf of the Government of the United Kingdom the following proposal:

Article 2 (Taxes Covered) paragraph (3).

It is understood that the secondary tax on companies is a tax payable in respect of the profits of South African companies and the allowance as a credit for this tax against United Kingdom tax is to be determined in accordance with the terms of sub-paragraph (b) of paragraph (2) of Article 21 of the Convention.

If the foregoing proposal is acceptable to the Government of the Republic of South Africa, I have the honour to suggest that the present Note and Your Excellency’s reply to that effect should be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the entry into force of the Convention.

I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

Rt Hon Gordon Brown MP

Chancellor of the Exchequer

Excellency

I have the honour to acknowledge receipt of Your Excellency’s Note dated 4th July 2002 which reads as follows:

“I have the honour to refer to 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 which has been signed today and to make on behalf of the Government of the United Kingdom the following proposal:

Article 2 (Taxes Covered) paragraph (3).

It is understood that the secondary tax on companies is a tax payable in respect of the profits of South African companies and the allowance as a credit for this tax against United Kingdom tax is to be determined in accordance with the terms of sub-paragraph (b) of paragraph (2) of Article 21 of the Convention.

If the foregoing proposal is acceptable to the Government of the Republic of South Africa, I have the honour to suggest that the present Note and Your Excellency’s reply to that effect should be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the entry into force of the Convention.”

The foregoing proposal being acceptable to the Government of the Republic of South Africa, I have the honour to confirm that Your Excellency’s Note and this reply shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force of the Convention.

I take this opportunity to renew to Your Excellency the assurances of my highest consideration.

T A Manuel

Minister of Financeof the Republic of South Africa