Page 52 - P6 Slide Taxation - Lecture Day 6 - Dividend Tax

Example

2. EdoCo Ltd declared a dividend of R1,50 per share on 15 August
2013 that is payable to shareholders who are registered on 31

August 2013. The total dividend of R15 000 000 was paid to a

central securities depository participant (a regulated

intermediary) on 1 September 2013. The central securities

depository participant paid the dividend to EdoCo Ltd’s

shareholders on 2 September 2013. 20% of EdoCo Ltd’s shares

are held by a pension fund that submitted a declaration to the

central securities depository participant that it is exempt from

dividends tax on 1 September 2013. The other 80% of EdoCo

Ltd’s shareholders are natural persons who are residents in

South Africa.