The South African Revenue Service (SARS) published a comprehensive guide to dividends tax on 12 September 2019. The objective of this guide is to help users in gaining a more in-depth understanding of dividends tax. This guide is not an ‘official publication’ and, therefore, will not be a source to establish a binding practice generally prevailing under section 5 of the Tax Administration Act 28 of 2011. It covers liability to dividend tax, the exemption from dividend tax, withholding of dividends tax and payment of dividend tax.
The information in this guide is based on the income tax and tax administration legislation (as amended) as at the time of publishing and includes the following:
• The Taxation Laws Amendment Act 23 of 2018 which was promulgated on 17 January 2019.
• The Tax Administration Laws Amendment Act 22 of 2018 which was promulgated on 17 January 2019.
All guides, interpretation notes, rulings, forms, returns and tables referred to in this Guide are available on the SARS website.
