Page 34 - P6 Slide Taxation - Lecture Day 4
P. 34
LOAN TO S/H
Amount of deemed dividend in specie
Market related Less: Actual interest
interest on the loan payable 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
