Abstract
M.Com.
An offshore indirect transfer transaction refers to an indirect transfer in which the transferor of the indirect interest is resident in a different country from that in which the asset in question is located. The main objective of this study is to compare the South African income tax implications on the disposal of shares in land-rich companies by non-resident companies to some countries where the law has been tested in the courts i.e. China and India. The research method that was applied is the doctrinal method, as it attempts to analyse documents to resolve the questions that have been provided. Thus, the arguments laid down are supported by the applicable data collected. Based on the critical comparison performed, the study established that South Africa, China, and India have similar tax legislation for offshore indirect transfers, and that these countries are comparable in respect of the taxation of offshore indirect transfers. South Africa, China, and India all impose capital gains tax where there is the disposal of shares in a land-rich company by a non-resident company. There are some differences in application, such as what would constitute a land-rich company, the rate of withholding tax, and the determination of the correct taxable amount between these countries. Further findings related to the risk detection and it is apparent that South Africa lags behind China and India in this regard, as these countries have implemented provisions that require taxpayers to report offshore indirect transfers.