Page 45 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 45
Example
On 1 July 2013 Specuvest Ltd (which is a resident) declared and paid a
dividend of R14 per share to its shareholders. The company has 100 000
issued shares and its shareholders are as follows:
O EagleEquity (Pty) Ltd (which is a resident of the Republic). This company
holds 15 000 of Specuvest Ltd’s shares and received a dividend of
R210 000 (15 000 × R14).
O BestScheme (a pension fund as defined in s 1). BestScheme holds 35
000 of Specuvest Ltd’s shares and received a dividend of R490 000
(35 000 × R14).
O UK-Co (a company and a resident in the UK). UK-Co holds 30 000 of
Specuvest Ltd’s shares and received a dividend of R420 000 (30 000 ×
R14). The double tax agreement (DTA) between South Africa and the UK
provides that 5% dividends tax may be levied in respect of this dividend.
O The remaining 20 000 shares of Specuvest Ltd are held by natural
persons who are residents of the Republic. In total they received
dividends of R280 000 (20 000 × R14).
Calculate the amount of dividends tax that is levied in respect of the
dividends paid to each of the company’s shareholders (assume in all
cases that the shareholders are the beneficial owners of the dividends).
Assume that dividends tax was already effective on all relevant dates.
