- SARS says your foreign dividends are now 100% taxable in South Africa. But there are five tax-free dividends you can take advantage of
- A few years ago, SARS took Secondary Tax on Companies (STC) away as a form of taxing dividends. Dividends Withholding Tax (DWT) replaced this.
But, with this change, SARS had to align the treatment of foreign dividends for tax purposes, as the new basis of DWT was a tax on the individual taxpayer, and no longer the company.
This meant SARS would tax you on the tax rates per the individual ... ››› more
- [20 May 2015]
- Shareholders: listen up or you could trigger unnecessary dividends tax!
- As a shareholder, you probably make and take loans to and from your company.
But do you understand the serious consequences from SARS if you don't account for these loans correctly?
Added to that, some shareholders aren't aware their liability is limited, even though the company is a separate legal entity.
Read on and I'll show you the negative implications of shareholder's loans so you ... ››› more
- [18 May 2015]
- Have you made a donation? Find out how much donations tax you'll have to pay
- Have you given something to someone for free? If so, read on to find out how much donations tax you'll have to pay....
The Practical Tax Loose Leaf Service explains that a donation is when:
You give something away for free;
You get rid of something for a lesser price than it's worth; or
A company disposes of property, at the request of any person. SARS will see that property... ››› more
- [02 December 2013]
- Revealed: Two dividend payments exempt from dividends tax
- Did you know that some dividend payments are automatically exempt from Dividends Tax (DT)? That's right. If your company pays these out, the beneficial owners of your dividend payouts won't have to submit the declaration and undertaking to prove it! Here are the two dividends that are exempt from DT.
As mentioned, some dividend payments are automatically exempt from DT.
What are they?
T... ››› more
- [27 November 2013]
- Here's how to avoid a SARS audit of your dividends
- If you're waiting for your dividends payout, make sure it doesn't come with a SARS audit or penalty! Here's how... The experts at the Practical Tax Loose Leaf explain everything you need to know.
First, take note that when your company pays out a dividend, it'll withhold the Dividends Tax (DT) from the payment to the shareholder. It then pays this over to SARS (in much the same way that you d... ››› more
- [18 November 2013]
- Dividends Tax: Are you at risk of being audited?
- Dividends Tax (DT) is a tax charged when a dividend is paid out. While the liability for tax falls on the shareholder, the company paying the dividend must withhold the tax and pay it to SARS on behalf of the shareholder. As the company paying the dividend, it's crucial that you get this right. If you don't, you'll expose your company to a SARS audit. Use this checklist to ensure you're not at ris... ››› more
- [31 October 2013]
- Five terms to help you decode and complete your DTR2 form quick and easy
- When your company pays out a dividend, you must withhold Dividends Tax (DT) from your shareholders' payment and pay it over to SARS. This means your company must complete and submit a DTR02 form to SARS. Here are five terms to help you decode your DTR02 form and complete it correctly.
DT is a tax imposed on shareholders when they receive their dividends.
"You can't afford to make a mistake ... ››› more
- [17 October 2013]
- How to avoid SARS' auditing your company's dividends
- If there's one thing SARS scrutinises, it's your company's treatment of dividends when you pay them out. Get this wrong and you'll have a SARS audit coming your way. Is that a risk you're prepared to take? Read on to find out what you must do to when paying out dividends so you can avoid a SARS audit of your dividends.
Non-declaration of taxable dividends is regarded as tax evasion. SARS is ent... ››› more
- [31 July 2013]
- Are you aware of the three basic features of dividends under the recent DT rules?
- On 1 April 2012, the new Dividends Tax (DT) came into effect, replacing Secondary Tax on Companies (STC). While it's been a year since DT came into effect, many companies are still getting the treatment of dividends wrong. To ensure you always get this right and avoid penalties, here are the three basic features of dividends under the new DT rules.
'SARS is going to be scrutinising your company... ››› more
- [16 July 2013]
- Don't delay in submitting your dividends tax return!
- The deadline for submitting your dividends tax return is fast approaching -it's on 1 March! Many businesses are hoping for this week's Budget Speech to implement tax deductions to ease their financial burden. They're hoping that dividends tax will be one of the areas affected, but that's not likely as it's only just been implemented, and this any changes implemented in this year's Budget Speech wi... ››› more
- [25 February 2013]