HomeHome SearchSearch MenuMenu Our productsOur products

Five foreign dividends you don't have to pay tax on

by , 01 July 2015
Do you benefit from investments from companies outside of South Africa? Did you know that SARS has changed the exemption on foreign dividends? Well, this means all your foreign dividends are taxable in South Africa.
But wait there's good news.
There are five foreign dividends you can receive from investments in companies located in other countries that are tax free!
Read how you can take full advantage of these five foreign dividends.

*****************
11 Law changes every financial manager must know

After getting literally thousands of letters from distressed financial managers about every aspect of the Companies Act, we decided to compile all the changes into one, easy-to-understand, 100% complete and accurate resource – The Companies Act: 11 Law changes for the financial manager.

Get your copy of the Companies Act: 11 Law changes for the financial manager today.

********

What is a foreign dividend and how do I identify it?

It's a dividend you receive from investments from companies outside of South Africa. There are four criteria your income must meet to be a foreign dividend.

If your income meets the following criteria, it will be a foreign dividend for tax purposes:

1.    You must be entitled to the income already;
2.    Your income must source from a foreign company;
3.    The income is for a share in the foreign company; and
4.    The income is seen as a dividend in that foreign country you own.

Now you know how to clearly identify a foreign dividend, let's see what tax free dividends you can benefit from.
*****************
31 Business Boosting Tax Breaks

We know that paying taxes is, well, taxing. And we know how you rely on tax breaks to shrink your tax bill legitimately and get the most of your business transactions. And that's precisely why we pressed our tax experts for all 31 breaks. And then we pressed them for the checklists and tips you'll need to qualify for the breaks.

And that's what makes this e-report - 31 Business Boosting Tax Breaks - so valuable! Not only does it list all the tax breaks, but it walks you through exactly what you need to do, to claim them all!

Find out more...

********
 
Enjoy paying no tax on the following five foreign dividends:

1.    If you hold at least 10% of equity shares and voting rights of the foreign company who is paying foreign dividend
2.    If your business is a foreign company. And the foreign company pays the foreign dividend is resident for tax in the same country as you are.
3.    If you receive the foreign dividend from a controlled foreign company. The exempt portion is the foreign dividend amount that won't exceed the amount you include in your income.
4.    If the foreign dividend arises from a JSE listed share, but excludes a distribution of an asset in specie (in its present form). So it must be a cash dividend.
5.    If the foreign dividend arises from a JSE listed share and it's a distribution of an asset in specie. But as long as the recipient is a local company.

But if your foreign dividend isn't fully exempt, a partial exemption will apply. Stay tuned for when I explain how you can qualify for partial exemption.

P.S. If you need more information on dividends tax, get your hands on the Practical Tax Loose Leaf. In the Practical Tax Loose Leaf we've got a dedicated chapter on dividends tax.







Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>