IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2012 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

From 1 April 2012, a dividends tax (DT) replaced the Secondary Tax on Companies (STC). The DT rate is 15% on receipt of dividends, whereas STC was imposed on companies (at a rate of 10%) on the declaration of dividends.
By contrast with the STC, the DT allows reduced rates for foreign residents, in instance where Double Taxation Agreement (DTA) exists between South Africa and their country of residence. This normally requires the foreign beneficial owner to be a company and to hold between 10% and 25% of the share capital of the South African company declaring the dividend.
 

AFFECTED COUNTRIES

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