Page 25 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 25
Tax consequences of cash dividends
Person (NP, Co, CC,
Distribute dividend
Co/CC Trust etc.)
in cash
that holds shares
Distribution in cash
Labat
•No s 11(a) deduction case Gross income’ def. s1, par (k)
“not in the production of • Local and foreign dividends
income”
•Withhold dividends tax @15% Less exemptions:
on behalf of the holder of the • Local dividend → s 10(1)(k);
share and pays over to SARS. • Foreign dividend → s 10B
