Page 33 - Profmark BSA Guide 2025

Capital Transactions
Proceeds from the sale of assets in SA, may be remitted abroad. Proceeds on the sale
of assets by emigrants will be subject to the blocked account provisions.

Dividend payments to non-residents
Dividends declared by companies are remittable to non-resident shareholders in
proportion to percentage shareholdings, subject to certain restrictions if the dividend
is declared by an affected person who has local financial assistance. An emigrant
shareholder will be entitled to dividends declared out of income earned from normal
trading activities after the date of emigration. Non-listed companies have additional
requirements to be met in order to transfer such dividends. Dividends declared out of
capital gains, or out of income earned from normaltrading activities prior to the date
of emigration, remain subject to the blocked account provisions.

Director fee payments to non-residents
Authorised dealers may transfer director’s fees to non-resident directors permanently
domiciled outside SA, provided the application is accompanied by a copy of the
resolution of the board of the remitting company, confirming the amount to be paid to
the beneficiary.
Withholding tax
■ A withholding tax of 15% is payable when royalties from a South African source
are paid to non-residents, subject to certain exemptions.
■ A withholding tax of 15% is payable when interest from a South African source is
paid to non-residents, subject to certain exemptions.
■ A withholding tax of 15% on payments to foreign entertainers and sportpersons for
activities in SA.

31