22/11/2022
What is Dividends Tax?
Dividends Tax is a tax on shareholders (beneficial owners) when dividends are paid to them, and, under normal circumstances, is withheld from their dividend payment by a withholding agent (either the company paying the dividend or, where a regulated intermediary is involved, by the latter).
A dividend is in essence any payment by a company to a shareholder in respect of a share held in that company, excluding the return of contributed tax capital (i.e. consideration received by a company for the issue of shares).
It is triggered by the payment of a dividend by any:
South African tax resident company; or
Foreign Company whose shares are listed on a South African Exchange.
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