Page 6 - P6 Slide Taxation - Lecture Day 6 - Return of Capital

 A distribution by a company is either a dividend

or a return of capital.

 Dividends tax is levied at 15% on dividends paid.

 Dividends tax is levied on the beneficial owner

(usually the shareholder) but the company has to

withhold it.

 Dividends tax on in specie dividends is levied on

the company.

 Certain dividends are exempt from dividends

such as dividends paid to SA resident companies

and pension funds.