Page 73 - Companies & Dividend Tax

DIVIDENDS

Company distributions made to the holder of a

share(s) in terms of the Eighth Schedule

• A distribution by a company to the holder of a

share/s may consist of a dividend and/or a return

of capital (CTC).

• A return of capital is subject to CGT.

• If the beneficial holder is a share dealer and the

shares were held and sold for speculative purposes

the return of capital will be gross income (in the

absence of the application of section 9C).

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