Comprehensive Guide to Dividends Tax (Issue 5)
SARS has published issue 5 of the Comprehensive Guide to Dividends Tax
This guide does not constitute an “official publication” as defined in the Income Tax Act 58 of 1962 (“IT Act”) and is not binding on SARS. The guide is merely intended to assist taxpayers in the practical interpretation and application of the requirements set by law.
The guide provides a general introduction to dividends tax and covers the following topics in detail:
- Introduction to dividends tax
- Levy of dividends tax, liability for dividends tax, deeming provisions and special rules applying to specified companies
- Exemption from dividends tax and relief from double taxation
- Withholding of dividends tax
- Payment and recovery of dividends tax, assessments, noncompliance, record-keeping and electronic communication
- Refund of dividends tax
- Rebate against normal tax or dividends tax in respect of foreign taxes on dividends
- Company reorganisation rules – Contributed tax capital and dividends tax
The section relating to Secondary tax on companies (“STC”) has been removed from issue 5, given that section 64J of the IT Act was deleted with effect from 17 January 2019. The guide now merely states that the STC credit of a company is deemed to be nil on 1 April 2015 and that the previous issues of the guide have to be consulted for commentary on section 64J.
Find a copy of the guide here.
03/06/2022
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