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.