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: 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 […]