Before we proceed to voting on the adoption of the report, perhaps the Minister could tell us, in a few words, what ``double taxation'' means.
Thank you for the opportunity, Chairperson.
Where companies have invested in more than one country, we need to ensure that, in order to stimulate such investment, these companies are not taxed double, premised on the double taxation agreement. Especially with changes in taxation laws around the world, where one shifts from source to residence, in terms of the residents' tax proposals which I, in fact, am dealing with in Parliament at the moment, South African firms have become transnational.
Assuming that a South African firm invests in the People's Republic of China, it would be taxed on its income here and would not be taxed in China as well. The agreement would allow for certain tax credits to be structured so that one can, in fact, allow firms to globalise.
Thank you very much, hon Minister. I think we often forget that the public has an interest in some of these questions. That was a very useful explanation.
Debate concluded.
Report adopted in accordance with section 65 of the Constitution.