FAQ: I hold units in a unit trust through a management company that charges me a monthly fee. Is this fee deductible from any capital gain that I may make?
No, this is a current expense that does not enhance the value of the assets concerned.
FAQ: What if an asset was acquired before the valuation date?
For an asset acquired before the valuation date and disposed of afterwards, CGT will be payable only on the capital gain attributable to the period after the valuation date. In other words, any gain attributable to the pre-valuation date period is not subject to CGT. The gain attributable to the period of ownership of an […]
FAQ: What is base cost?
Base cost is the amount against which any proceeds upon disposal are compared in order to determine whether a capital gain or loss has been realised. For assets held on the valuation date (1 October 2001) that were acquired before that date base cost is equal to the “valuation date value” of the asset plus […]
FAQ: Will Dividends Tax withheld be set off as a credit against my Income Tax liability, or may I claim a refund of the Dividends Tax withheld if I am not liable for Income Tax (for example I earn income below the tax threshold)?
No, Dividends Tax is a separate and final tax. It may not be used as a credit against your income tax liability. For the same reason a refund of the Dividends Tax withheld cannot be claimed if you are not liable for income tax.
FAQ: Will penalties be levied on late payment and submission to SARS?
Yes, penalties will be levied for late payments of Dividends Tax or the late submission of Dividends Tax returns.
FAQ: What is the definition of “Date paid / payable” referred to in the BRS?
As per section 64E of the Act this refers to the earlier of the dividend being paid or becoming due payable by the company declaring the dividend.
FAQ: How will the SARS identify Dividends Tax payments?
Dividends Tax transactions will be distinguishable from assessed Income Tax and provisional tax by the tax form type and Payment Reference Number.
FAQ: Which dividend distributions are automatically exempt from Dividends Tax?
Some dividend payments are automatically exempt, i.e. do not require the beneficial owner to submit a declaration and undertaking form in order to qualify, and they are: Dividends paid to “group companies” as defined in section 41 of the Act; and Dividends paid to regulated intermediaries (qualifying withholding agents) as defined in section 64D of […]
FAQ: If a dividend vests in the beneficiary of a trust, who is required to report on the details of the beneficiary (as the beneficial owner in this case)?
The Company/Regulated Intermediary (i.e. the withholding agents) will have to report to SARS on the details of the dividend declared to the beneficiary/beneficial owner.
FAQ: Where it is not cost effective to pay small amounts of dividends to beneficial owners (donated to a charity as per agreement instead), would these still be subject to Dividends Tax?
Yes. Dividends Tax must be withheld and be paid to SARS on these dividends even though the cost of processing these dividends often exceeds the value of the dividend payment.
