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.
FAQ: I am currently not registered for Income Tax (eg. I am a low income earner who earns income under the tax threshold and acquired some shares as a result of, for example, a BBBEE deal). Would I need to now register as a result of Dividends Tax?
No, if you are not required by law to register for income tax purposes you will not be required to do so merely as a result of the introduction of Dividends Tax.
FAQ: I am an individual and I receive dividends, must I submit Dividends Tax information to SARS?
Individuals receiving dividend payments are not responsible for submitting any information to SARS. The company or regulated intermediary paying the dividend administers this aspect. The only requirement would be for you to declare the dividend received / receivable in your annual Income Tax Return (ITR12). Non-resident individuals may (in very limited circumstances) qualify for a […]
FAQ: If I am a company / regulated intermediary, when may I start issuing the declaration and undertaking forms to beneficial owners?
You can already start issuing the forms. Refer to Annexure G of the BRSification (BRS) for examples of the required “declaration” and “undertaking” forms for both exemptions and reduced rates. Please note that SARS has not issued the actual form to be used but has prescribed the required wording and minimum information to be provided. […]
FAQ: Where can I find examples of the format for the beneficial owner declaration and undertaking forms for exemption and reduced rates?
Refer to Annexure G of the BRSification (BRS) for examples of the required “declaration” and “undertaking” forms for both exemptions and reduced rates as published on the SARS website. Please note that SARS has not issued the actual form to be used but has prescribed the required wording and minimum information to be provided. Companies […]
FAQ: Are capital distributions subject to Dividends Tax?
Pure capital distributions are not dividends for tax purposes, and hence no Dividends Tax liability arises. However, if a portion of a capital distribution constitutes a dividend it would trigger a Dividends Tax liability and should be reflected in the return to SARS.
FAQ: Is disclosure required with regard to linked units which comprise both dividends and interest?
Only the dividend component of linked units must be declared in the submission for Dividends Tax purposes. The interest portion should not to be reflected in the return to SARS.
FAQ: Will I be able to claim a refund if I made a mistake or submitted the declaration form late?
Under certain circumstances refunds may be claimed provided the claim is made within three years from the date of payment of the dividend to you. The claim must be made to the person who paid the dividend to you (i.e. the company if it paid the dividend to you directly, alternatively to the regulated intermediary […]
FAQ: What happens if I do not complete the form but do qualify for an exemption in terms of section 64F or a reduced rate in terms of a DTA?
If you do not complete and return the required form to the company / withholding agent, the latter must deduct the full Dividends Tax from your dividend payment.
