Page 46 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax
P. 46
Solution
O EagleEquity (Pty) Ltd – no dividends tax (Resident Co -
exempt)
O BestScheme – no dividends tax (Pension fund – exempt)
O UK-Co - dividend of R420 000 is subject to 5% dividends tax
in terms of the DTA between South Africa and the UK.
O Dividends tax of R21 000 (R420 000 × 5%) is
O Dividends of R280 000 paid to the remaining shareholders
who are natural persons and residents of the Republic are
subject to dividends tax
O Dividends tax of R42 000 (R280 000 × 15%) is levied
• Specuvest Ltd is obliged to withhold the amount of dividends tax from the amounts
payable to its shareholders and to pay the amount withheld to SARS
• Specuvest Ltd will therefore pay R399 000 (R420 000 (dividend) – R21 000
(dividends tax)) to UK-Co and R238 000 (R280 000 (dividend) – R42 000 (dividends
tax) to its shareholders who are natural persons
