Page 56 - Chapters 17 & 18 - Dividends & Dividend Tax
P. 56
Example
DueCo Ltd is a resident company in the United Kingdom. It is
not a resident of the Republic. Its10 000 000 issued shares
are listed on JSE Limited. On 1 August 2014 the company
declared a dividend of £2,60 per share held by registered
holders of shares on 15 August 2014. The company paid the
total dividend of £26 000 000 on 20 August 2014 to a central
securities depository participant as contemplated in par (a) of
the definition of ‘regulated intermediary’ in s 64D. The central
securities depository participant paid the dividend on 25
August 2014 to the registered holders of shares, who are all
natural persons that are residents of the Republic (the
relevant exchange rate was £1:R12,85 on this date). The
dividend declared by DueCo Ltd was subject to £1 820 000
non-refundable tax in the United Kingdom.
Determine the amount of dividends tax that had to be
withheld by the central securities depository participant.
