FAQ: What is the main difference between Dividends Tax and STC?
The main difference lies in who is liable for the tax. Dividends Tax is a tax levied on shareholders (beneficial owners of dividends) on receipt of dividends, whereas STC is a tax levied on companies on the declaration of dividends. There is an exception to this basic Dividends Tax rule in the case of a […]
FAQ: When will Dividends Tax come into effect
Dividends Tax applies to any dividend declared and paid on or after 1 April 2012.
FAQ: What is the rate of Dividends Tax?
Dividends tax was introduced at a rate of 15% when it came into effect on 1 April 2012. The rate was increased to 20% in respect of any dividend paid on or after 22 February 2017 (irrespective of when it was declared).
FAQ: What is a dividend?
A dividend is defined in section 1 of the Act, but in essence is any payment by a company for the benefit of a shareholder in respect of a share in that company (excluding the return of contributed tax capital, i.e. consideration received by a company for the issue of shares).
FAQ: What is meant by beneficial owner?
The beneficial owner is the person entitled to the benefit of the dividend attaching to a share.
FAQ: Who is liable for the Dividends Tax?
The beneficial owner of the dividend is liable for the Dividends Tax – normally this would be the shareholder. However, if the particular dividend consists of a distribution of an asset in specie the liability falls on the company paying the dividend (similar to the situation under STC).
FAQ: What is the current rate on Air Passenger Tax?
Standard rate departures are R190 per ticket (for a destination other than SACU countries) Lower rate departures to BLNS countries (Botswana, Lesotho, Namibia and Swaziland) are R100 per ticket.
FAQ: Is Air Passenger Tax payable on complimentary tickets?
Complimentary or free tickets issued do not fall within the exemptions of Air Passenger Tax. Therefore where complimentary tickets are issued the applicable rate must apply.
FAQ: When do you receive this statement?
At the end of each month. It reflects all transactions that took place during the month.
FAQ: When do you submit the return?
The airline/operator is liable, within 21 days after the end of the month during which the amount was collected, to pay SARS.
