14 April 2016

South African tax and exchange control considerations regarding set-off, netting and creating loan accounts discussed

It is commonplace for multinational corporations to enter into set-off or netting transactions. Although the economic outcome is the same, there are subtle differences between set-off and netting. In addition, these actions may result in negative tax consequences.

A Tax Alert prepared by Ernst & Young South Africa, and attached below, provides additional details.

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ATTACHMENT

Document ID: 2016-0679