On the 23 June 2017 a new Tax Information Exchange Agreement (‘TIEA’) entered into force between the Principality of Monaco and the Republic of South Africa. The TIEA was signed by the two states in September 2013 but only enters into force when the formalities have been completed in accordance with the laws of both states.
The TIEA follows the OECD bilateral model and requires the respective competent authorities in each state to provide assistance through the exchange of information to assist with the collection and investigation of taxes, subject to the rights and safeguards described in the agreement.
The agreement covers South African taxes including withholding taxes on royalties and interest, dividend tax and tax on foreign entertainers and sportspersons.
Under the TIEA the procedure under which requests are made is described, together with the provisions under which either party may decline to respond to a request and the duties of confidentiality on receipt of information.