Page 53 - P6 Slide Taxation - Lecture Day 4

REBATE IRO FOREIGN TAXES ON DIVIDENDS

(S64N)

• Foreign co listed on JSE – subject to dividends tax (if paid to

resident)

• If dividend also subject to tax in foreign country = entitled to

rebate ito s64n

• Rebate = foreign tax paid

s 64N(4)

Dividends tax =

• Translate dividend using spot rate on date paid

• Calculate dividends tax

• Less foreign tax paid

• = Dividends tax to be withheld