Are there any exemptions applicable to Dividends Tax?

 

 Dividends payable to the following beneficial owners could be exempt from Dividends Tax (provided the required “declaration” and “undertaking” are submitted to the company or withholding agent in time):

  • South African resident companies Government (all three spheres)
  • Public Benefit Organisations (approved in terms of section 30(3) of the Act)
  • Mining rehabilitation trusts (section 37A of the Act)
  • Section 10(1)(cA) persons
  • Section 10(1)(d) funds (e.g. pension funds, provident funds and medical schemes)
  • Section 10(1)(t) persons (e.g. CSIR and SANRAL)
  • Shareholders in a registered micro business (6th Schedule to the Act) (insofar as dividends do not exceed R200,000 per year)
  • Non-residents receiving dividends from foreign companies listed on the Johannesburg Stock Exchange
  • Portfolios of collective investment schemes in securities
  • Any person to the extent that the dividend constitutes income of that person
  • Any person to the extent that the dividend was subject to the STC
  • Fidelity or indemnity funds contemplated in section 10(1)(d)(iii)
  • Dividends paid by a REIT (real estate investment trust) or a controlled property company (as defined in section 25BB) received or accrued before 1 January 2014 (insofar as it does not consist of a dividend in specie)
  • A small business funding entity as contemplated in section 10(1)(cQ)
  • A natural person in respect of a dividend paid on or after 1 March 2015, for a tax free investment.
Last Updated: 27/01/2015 12:37 PM     print this page
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