Page 45 - P6 Slide Taxation - Lecture Day 4

SOLUTION

• Eagleequity (pty) ltd – no dividends tax (resident co - exempt)

• Bestscheme – no dividends tax (pension fund – exempt)

• Uk-co - dividend of R420 000 is subject to 5% dividends tax in

terms of the DTA between south africa and the UK.

• Dividends tax of r21 000 (r420 000 × 5%) is

• Dividends of R280 000 paid to the remaining shareholders who

are natural persons and residents of the republic are subject to

dividends tax

• 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