INTERNATIONAL CORPORATE SERVICE PROVIDERS ACT, 2003

SCHEDULE 2

Section 18(1)

1. Notwithstanding anything to the contrary in any of the Acts and the Decree specified in column 1 the taxes, contributions or fees as the case may be referred to in the corresponding entry in column 2 calculated in the manner therein specified, shall be paid by each licensee.

Column 1                        Column 2

(a) Trades Tax Act

(i) All furniture, stationery and equipment imported for the use of an office of a licensee and used only for the licensed activity shall be liable to trades tax under the Trades Tax Act at the rate of 5%.

(ii) One motor vehicle of an engine capacity not exceeding 1800cc imported for use in connection with the licensed activity shall be liable to trades tax at the rate of 75%.

A licensee shall pay employer's contribution as follows -

(b) Social Security Act

(a) during the first five years of its operations at the rate of 5 per centum of each employee's emoluments;

(b) during the period from the sixth to the fifteenth year at the rate of 10 per centum of each employee's emoluments;

(c) Immigration Decree

A licensee shall be entitled to employ expatriate employees up to 50 per centum of the total number of its employees and the gainful occupation permit fee shall be R375 per employee per month.

(e) Business Tax Act

The tax payable by a licensee in respect of its income shall be the aggregate of the following amounts paid by the licensee in respect of specified entities -

(i) 15% of fees in respect of incorporation or registration;

(ii) 7.5% of fees in respect of annual renewal of licence;

(iii) 5% of all other fees

2.   (a) The provisions of Part IV of the Business Tax Act shall not apply in respect of payments made by a licensee.

(b) Section 88 shall not apply to a licensee.

3.   The Goods and Services Tax Act shall not apply to a licensee.