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S.Africa: South Africa Revenue Service Issues Guidelines on Determining Place of Effective Management

South Africa Revenue Service Issues Guidelines on Determining Place of Effective Management
The South African Revenue Service (SARS) Nov. 3 issued an interpretation note providing guidance on determining the place of effective management of a company for tax residency purposes. The note explained that a company’s place of effective management refers to the place where key management and commercial decisions necessary for the conduct of its business as a whole are regularly and predominantly made or the headquarters location of a company, unless its structure is decentralized. SARS stated that a company may have more than one place of management, but not more than one place of effective management at a time. The note acknowledged that a definitive rule for place of management cannot be put forward and the issue must be examined on a case-by-case basis where the test is one of substance over form. [South Africa, South African Revenue Service, 11/03/15]