Page 17 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 17
Solution
Total amount transferred to Peter Bokaba R100 000
Less: Amount indicated by directors to represents a reduction
in the company’s contributed tax capital (i.e. R100 000). This
amount may, however, not exceed R75 000
(R100 000 total contributed tax capital prior to the transfer) ×
75 000 (number of shares that Peter held) / 100 000 (total
number of shares) = (75 000)
Dividend as defined R25 000
O Note
The dividend portion of the amount transferred to Peter
Bokaba is subject to dividends tax @ 15%
