Page 40 - Profmark BSA Guide 2025

Dividends Tax
Dividends tax is a tax levied on the shareholder at a rate of 20% on dividends paid.
However, where a dividend in specie is paid, dividends tax is levied on the company
declaring the dividend. Dividends tax is normally withheld by the company paying the
dividend, and is payable at the end of the month following the month in which the
dividend was paid.
A dividend is exempt from dividends tax if the dividend is not a dividend in specie and
the beneficial owner is:
■ A SA company.
■ The Government and various quasi government institutions.
■ Public Benefit Organisations.
■ Environmental rehabilitation trusts.
■ Pension, provident and similar funds.
■ Medical Schemes.
■ A shareholder in a registered micro business (only the first R200 000 of dividends
paid during a particular year of assessment).
■ A non-resident and the dividend is paid by a South African Listed non-resident
company.
Secondary Tax on Companies (‘STC’) Credits
If a company has STC credits at the effective date of the Dividends Tax regime these
STC credits must be used before or on 31 March 2015 (i.e. within 3 years from the
effective date).

Securities Transfer Tax
The tax is imposed at a rate of 0.25% on the transfer of listed or unlisted securities.
Securities consist of shares in companies or member’s interests in close corporations.
Capital Incentive Allowances
The Capital Incentive Allowance is a reduction in the amount of tax payable, offered
as an incentive for investment in large-scale projects. A certain percentage of the
capital asset’s cost is allowed as capital allowance during the accounting period

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