Page 40 - Companies & Dividend Tax

DIVIDENDS

Introduction

• A dividend is a distribution made by a company to the

beneficial owner by virtue of the share held in the company.

• There must be a close connection between the shares and

the dividend.

• Dividends tax is necessary to make the drafting, the

negotiations and the application of double tax agreements

(DTA) / tax treaties with foreign countries feasible.

Remember that a DTA overrides the Republic’s tax laws.

• In order to understand the application of dividends tax

(final withholding tax) and the relationship to other taxes

you have to understand the applicable concepts defined in

section 1 and in section 64D.

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