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.
FAQ: How can an entity register for Dividends Tax?
The Dividends Tax number will be the entity’s Income Tax reference number. Dividends Tax transactions will be distinguishable from assessed income tax and provisional tax by virtue of the Tax Form type and payment reference number. There is therefore no additional process to follow to obtain a Dividends Tax reference number.
FAQ: Will regulated intermediaries / companies accept faxed or scanned & e-mailed declarations and undertakings?
Yes. The declaration and undertaking may be submitted to the regulated intermediary / company via post, fax or e-mail.
FAQ: Do I have to complete a declaration and undertaking form for exemption for each dividend / share in my share portfolio?
You only need to declare your exempt status per the declaration and undertaking form once (per company / withholding agent) and it will remain valid until your circumstances as the beneficial owner affecting the exemption change. Therefore, if you hold more than one share via the same regulated intermediary (withholding agent) you only need to […]
FAQ: As a beneficial owner where can I obtain the declaration and undertaking form for exemptions for completion?
The declaration and undertaking form for exemption can be obtained from the company or withholding agent who issued the dividend to the shareholders (beneficial owners). SARS will not be issuing these forms. Kindly contact the company or withholding agent if you have not received the form.
FAQ: Who should complete the declaration and undertaking for exemptions?
The beneficial owner of the dividend, but only if the beneficial owner qualifies in terms of the exemptions provided for in section 64F of the Act.
FAQ: What are the required “declarations” and “undertakings” to be submitted to qualify for exemptions from Dividends Tax?
Dividends payable to certain beneficial owners (shareholders) could be exempt if the beneficial owners submit the required declarations and undertakings to the company / withholding agent prior to the payment of the dividend. The declaration and undertaking should be in the format prescribed by the Commissioner, and should be made available to all shareholders (beneficial […]
