FAQ: Who should complete the declaration and undertaking form for reduced rates?
The beneficial owner of the dividend, but only if that person qualifies in terms of the criteria listed in the relevant DTA (normally Article 10). The criteria for a reduced rate (with a few exceptions) normally require the foreign beneficial owner to firstly be a company and secondly hold a significant shareholding (at least 10% […]
FAQ: Who qualifies for a reduced rate of Dividends Tax?
Only persons who are not South African tax residents could possibly qualify for a reduced rate of Dividends Tax, and only if: The criteria for a reduced rate set out in the relevant DTA between South Africa and the country of residence of the beneficial owner (normally Article 10) are met; and The required declaration […]
FAQ: What is the impact of a company’s existing Secondary Tax on Company credits on the beneficial owner’s liability for Dividends Tax?
A company may utilise its available STC credits to reduce the liability for Dividends Tax of the beneficial owner of the dividend.
FAQ: When does the Dividends tax have to be paid to SARS?
By the end of the month following the month in which the dividend was paid or became due and payable to the beneficial owner.
FAQ: Who is liable to pay Dividends Tax to SARS?
Generally speaking the Dividends Tax is a withholding tax. As such the tax is withheld from dividend payments and paid to the SARS by the company paying the dividend or, where a regulated intermediary is involved, by the latter. The person liable for Dividends Tax remains ultimately responsible to pay the tax should the company […]
FAQ: When will the trigger date be for dividends distributed in respect of units held in a Collective Investment Scheme in Securities?
In the case of a Collective Investment Scheme in Securities (CISS) the date the CISS distributes the dividend received by it triggers the liability for payment of the related Dividends Tax.
FAQ: Is there a difference in payment dates in respect of dividends declared on shares listed on the JSE and those on unlisted shares?
Where a declared dividend is payable to shareholders of a company listed on the JSE Ltd the tax is triggered on the actual payment date. In respect of unlisted companies the tax is triggered by the earlier of actual payment and the date the dividend becomes “due and payable”.
FAQ: What triggers Dividends Tax?
Dividends Tax is triggered by the payment of dividends by any: South African tax resident company; or Foreign Company in respect of shares listed on the Johannesburg Stock Exchange. Dividend payments by headquarter companies are not subject to Dividends Tax.
FAQ: What is a dividend in specie?
A dividend in specie refers to distribution to shareholders in a form other than cash. Please note: Effective 20 January 2015 A beneficial owner of a dividend in specie which is exempt has to submit a return to the Commissioner of SARS. A refund can now be claimed for a dividend in specie.
FAQ: Will STC and Dividends Tax overlap?
There is no overlap. If a dividend is declared prior to 1 April 2012 (irrespective of actual payment date) it will be subject to STC. Only where the dividend is declared and paid on or after 1 April 2012 will it be subject to Dividends Tax.
