Page 35 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax

Loan to s/h

Amount of deemed dividend in specie

Market related interest Less: Actual interest payable
on the loan on the loan

• If actual interest > market related

As from 1 August 2014 the interest = no dividend

official rate of interest was
increased from 6,5% to • Deemed paid on the last day of the

6,75% co’s yoa

(par 1 of the Seventh

Schedule)
• Dividend in other currency: convert

to R @ spot rate at the time the

dividend is paid