Page 55 - P6 Slide Taxation - Lecture Day 4
P. 55
SOLUTION
The beneficial owners of the dividend declared by dueco ltd are all natural
persons that are residents of the republic. The dividend is therefore not
exempt from dividends tax in terms of s 64F. The central securities
depository participant had to withhold the following amount dividends tax
from the dividend paid:
Total dividend paid that is subject to dividends tax (£26 000 000 ×
R12,85) ......... R334 100 000
Dividends tax (calculated at 15% of the amount of the dividend)
........................... 50 115 000
Less: foreign tax rebate (£1 820 000 × R12,85)
................................................... (23 387 000)
Dividends tax withheld R26 728 000
