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: 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: 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.