In the most recent tax year, from March 2011 to February 2012, company tax accounted for 20.4% of the state's tax revenue, says MoneywebTax
That's why with the Budget Speech just days away, businesses are hoping Finance Minister Pravin Gordhan will introduce tax deductions across the board.
And with 1 March the deadline for submitting your dividends tax return, dividends tax is top of mind for many.
'People get less from dividends these days compared to when ST
C was in place, so dividend tax
should be [reduced to the same as Secondary Tax on Companies
], at around 10%, suggests Fin24 user
Changes to dividends tax are unlikely!
But the Budget Speech is unlikely to introduce any changes to dividends tax, as it's only just been introduced.
Added to this, Secondary Tax on Companies (STC
), now phased out and replaced by dividends tax
, has been stable this year so we're unlikely to see any changes, said Des Kruger, a director for tax at Ernst & Young in the Business Report.
And any changes that are implemented in this week's Budget Speech will only affect next year's taxes.
So it's still it's your responsibility to request the dividends tax return and submit the relevant documents to SARS.
Based on the calculations, you'll have to pay over your 15% dividends tax as soon as it's been calculated.
Here's how to meet your dividends tax deadline
If you've received or paid out a dividend this tax-year, you'll have to submit information to SARS on dividends received, who received the dividend and who paid it over to SARS.
And if you use internet banking to pay SARS, you'll notice that the previous 'STC beneficiary' has been removed and replaced with a beneficiary for Dividends Withholding Tax (WHT), explains SARS
This new beneficiary lets you pay both STC
and dividends tax
, as you may still have to account for STC
from any dividends you received before dividends tax
was introduced on April 2012, writes the Tax Bulletin
So get all your financial records together and work out your business dividends tax today – you only have a few days left to meet this deadline!
. In it, you'll discover: