Direct Tax Avoidance Agreements

South Africa

Article 29 : Termination- 1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through the diplomatic channel, by giving to the other Contracting State written notice of termination not later than 30th June of any calendar year starting five years after the year in which the Agreement entered into force :

2. In such event, the Agreement shall cease to apply :

(a) in India : 

(i)  in respect of taxes withheld at source, for amounts paid or credited in the fiscal year beginning in the calendar year next following that in which notice is given; and

(ii)  in respect of other taxes, for any fiscal year beginning in the calendar year next following that in which such notice is given;

(b)  in South Africa, in respect of fiscal years beginning after the end of the calendar year in which such notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at New Delhi in duplicate, this Fourth day of December, 1996, in the English and Hindi languages, both texts being equally authentic. In case of divergence in interpretation, the English text shall prevail.

Sd/- 

(P. CHIDAMBARAM)

The Minister of Finance 

For the Government of  

the Republic of India 

Sd/-

ALEC ERWIN

The Minister of Trade and Industry

For the Government of the

Republic of South Africa

PROTOCOL

At the signing of the Agreement concluded today between the Government of the Republic of India 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, the undersigned have agreed that the following provisions shall form an integral part of the said Agreement :

1. With reference to any provision of the Agreement in terms of which income derived by a resident of a ContractingState may be taxed in the other ContractingState, it is understood that such income may, subject to the provisions of Article 22, also be taxed in the first-mentioned ContractingState.

2. With reference to paragraph 1 of Article 7, it is understood that where a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, participates, itself or together with other parts of that enterprise or with an associated enterprise, in the negotiation, conclusion or fulfilment of a contract entered into by that enterprise or associated enterprise, there shall be attributed to the permanent establishment that portion of the profits of the contract arising in the other State as relates to the contribution by the permanent establishment to the negotiation, conclusion or fulfilment of the contract.

3. With reference to paragraph 3 of Article 7, it is agreed that the limitations referred to therein shall in no event be less than those prevailing on the day of the signing of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Protocol.

DONE at New Delhi in duplicate, this Fourth day of December, 1996, in the English and Hindi languages, both texts being equally authentic. In case of any divergence in interpretation, the English text shall prevail.