As part of the 2013 Taxation Laws Amendment Bill, the government is proposing to introduce a withholding tax on service fees payable to foreign persons in respect of technical, managerial or consultancy services if the fees are received or accrued from a source within South Africa. The withholding tax will be a final tax and will be levied at the rate of 15% of the gross amount. The proposed withholding tax will be effective for service fees that are paid or payable on or after 1 January 2015.