Skip to main content
My Accountant
Shopping Cart
International Tax Compliance

Submit Withholding Tax on Royalties (WTR01)

File monthly WTR01 returns for royalty payments made to foreign non-residents and apply Double Taxation Agreement (DTA) relief.

File WTR01 ReturnView All Tax Services

Explore 100+ accounting & tax services with transparent fixed prices and clear completion times in our online store.

Accredited Professional Memberships & Regulatory Compliance

CIBA MemberBiz Accountant
SAIT MemberTax Practitioner
S
SARS RegisteredTax Practitioners
CIPC AgentCompany Registry
4.9 / 5.0
Verified Google Reviews • South Africa's Top Online Accounting & Tax Practice
Verified SARS Portal

Submit a SARS WTR01 Royalty Declaration Online

Use official SARS digital query portals to submit royalty withholding tax returns and calculate payment references.

Launch SOQS Portal
WTR01 Filing Instructions

How to Submit WTR01 Royalty Tax Declarations

01

Obtain the Signed Non-Resident WTRD Declaration First

Before remitting any cross-border IP or licensing fee, obtain a signed SARS WTRD declaration and undertaking from the foreign recipient if you intend to apply a reduced Double Taxation Agreement (DTA) rate instead of the statutory 15% rate.
02

Complete the Official WTR01 Return Schedule

Download and complete the SARS WTR01 (Withholding Tax on Royalties) return specifying the South African payer's Income Tax number, the foreign recipient's tax residence country, gross Rand royalty amount, and tax withheld.
03

Open the SOQS Withholding Tax Submission Channel

Navigate to tools.sars.gov.za/sarsonlinequery/DonationsTax (which hosts SARS SOQS declarations for IT144 Donations Tax and WTR01 Withholding Tax on Royalties).
04

Upload WTR01, License Agreement & Proof of Payment

Attach the signed WTR01 declaration, foreign IP/software license agreement, signed WTRD treaty declaration (if applicable), and proof of payment.
05

Remit Tax by the Last Business Day of the Next Month

Under Section 49F of the Income Tax Act, both the WTR01 declaration and payment must reach SARS by the last business day of the month following the month in which the royalty was paid or became due and payable.

Statutory Filing & Payment Deadlines

WTR01 Declaration & Payment Due Date: Last business day of the month following the month in which the royalty was paid or accrued.

SOQS Processing Turnaround: 5 to 15 business days to process the manual WTR01 upload and allocate the payment.

Overpaid WTR01 Refund Window: Must be claimed within 3 years after the royalty payment date under Section 49G.

Common Cross-Border Royalty Traps

Applying a Reduced DTA Rate Without a Signed Prior Declaration

Under Section 49E(2) of the Income Tax Act, a South African payer may not withhold at a reduced DTA treaty rate unless the foreign royalty recipient has provided a signed written declaration and undertaking BEFORE the royalty is paid.

Authorized Dealer (SARB / Bank) Blocking Cross-Border Swift Transfers

South African commercial banks (Authorized Dealers) require a submitted WTR01, SARS Tax Compliance Status (TCS) PIN, and valid license agreement before releasing outward cross-border royalty payments under Exchange Control rules.

Missing the End-of-Following-Month Statutory Deadline

Royalties are deemed paid on the earlier of the date of actual payment or the date the royalty becomes due and payable. Late WTR01 payment triggers an immediate 10% late payment penalty plus Section 89bis interest.

Frequently Asked Questions

What is the statutory Withholding Tax on Royalties rate in South Africa?

Under Section 49B of the Income Tax Act, a final withholding tax of 15% is levied on the gross amount of any royalty paid by a South African resident to or for the benefit of any foreign person from a South African source.

When are WTR01 returns and payments due to SARS?

Both the WTR01 return and the withheld tax payment must be submitted to SARS by the last business day of the month following the month in which the royalty was paid or became due and payable.

Can a Double Taxation Agreement (DTA) reduce the 15% royalty withholding tax?

Yes. Depending on the DTA between South Africa and the foreign recipient's country of tax residence, the royalty withholding rate can be reduced to 10%, 5%, or 0%, provided a valid WTRD declaration and tax residency certificate are in place prior to payment.

Do standard off-the-shelf SaaS subscriptions trigger WTR01 royalty withholding tax?

Generally, payments for the mere use of standard off-the-shelf software or SaaS without the right to commercially exploit, reproduce, or modify the underlying copyright do not constitute a 'royalty' under Section 49A, though custom IP licensing and white-label distribution rights do.

Can My Accountant manage our WTR01 filings and SARB cross-border approvals?

Yes! Our international tax specialists review your licensing contracts, verify DTA reduced-rate eligibility, submit WTR01 declarations via SOQS, and issue the SARS TCS PINs required by your bank's exchange control desk.

Related International & Corporate Tax Guides

Request FIA / Good Standing TCS PINSubmit SARS Donations Tax (IT144)Generate SARS 19-Digit Payment Reference (PRN)Complete SARS SOQS Directory
Registered SARS Tax Practitioners

Need Expert Assistance? Let My Accountant Handle SARS For You

Avoid SARS penalties, audit complications, or endless waiting on hold. Our registered SAIT tax practitioners can resolve your query, submit outstanding returns, and represent you directly with SARS.

Fast SARS Dispute & Debt Relief Verified TCS & Direct Power of Attorney
Book ConsultationView SARS Services