Page 71 - Companies & Dividend Tax

DIVIDENDS

A brief summary of section B follows:

• Remember that the amount received or accrued by

a beneficial owner as a local dividend must include

the gross dividend as gross income before the

exemption available in section 10(1)(k)(i) is applied.

• For example, a cash dividend of R100 000 is

declared to the beneficial owner. The beneficial

owner will receive R80 000 cash after the

withholding of R20 000 Dividends Tax. The

taxpayer must declare R100 000 as gross income.

The R100 000 will be exempt in terms of section

10(1)(k)(i).

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