Dividends Tax Notes

Dividends tax payable by a person (cash)

-An amount has been transferred by a company that is a resident for the benefit of a person in respect
of a share in Company after 1/4/2012, therefore it is a dividend:
The dividend is equal to cash amount of
xxx
-Excluding:
-Reduction of contributed tax capital xxx, limited to
-Total contributed tax capital allocated to that class
-xxx
-Share is in the company given to shareholders
-xxx
-Share buy-back by a listed company
-xxx
=Dividends
xxx
-STC credits 64J (1)
-Sunset Clause STC credits Fall away on 1 April 2015 (S 64J (5)
---=Balance
xxx
Dividends paid to, are not exempt
Natural persons
Trusts
Foreign companies are not exempt
-Dividends paid to, are exempt:
-Resident companies
-Government, provincial administration or municipality
-PBO
-Pension, provident and retirement annuity fund
=Total amount subject to dividends tax

-xxx
-xxx
-xxx
-xxx
xxx

-Dividends tax is taxed at 15%

-The dividend does not consist of a distribution of an asset in specie, therefore the beneficial
owner of the dividend is liable for dividends tax
-The dividend is declared by S 64E (2):
+A listed company, it is deemed to be paid on the date the dividend is paid, or
+An unlisted company, it is deemed to be paid on the earlier of the date which the dividend is
paid or become payable, or
Dividends tax payable by a person (Distribution of asset in specie)
-An amount has been transferred by a company that is a resident for the benefit of a person in respect
of a share in Company after 1/4/2012, therefore it is a dividend:
The dividend is equal to market value of the asset at
xxx
Excluding:
-Reduction of contributed tax capital xxx, limited to
-Total contributed tax capital allocated to that class
-xxx
-Share is in the company given to shareholders
-xxx
-Share buy-back by a listed company
-xxx
=Dividends
xxx
-STC credits 64J (1)
-Sunset Clause STC credits Fall away on 1 April 2015 (S 64J (5)
=Balance

---xxx

Dividends paid to, are not exempt

Natural persons
Trusts
Foreign companies are not exempt
-Dividends paid to, are exempt:
-Companies
-Pension, provident and retirement annuity fund
=Total amount subject to dividends tax

-xxx
-xxx
xxx

Dividends tax is taxed at 15%

-The dividend consists of a distribution of an asset in specie, therefore the company distributing
the dividend is liable for dividends tax
-The dividend is declared by S 64E (2)
+Distribution of an asset in specie, it is deemed to be paid on the earlier of the date which the
dividend is paid or become payable
Dividends tax payable by a person (Distribution of asset in specie: Low interest loan)
-An amount has been transferred by a company that is a resident for the benefit of a person in respect
of a share in Company after 1/4/2012,
The dividend is equal to market related interest less interest payable on debt
Excluding:
xxx
-Reduction of contributed tax capital xxx, limited to
-Total contributed tax capital allocated to that class
-xxx
-Share is in the company given to shareholders
-xxx
-Share buy-back by a listed company
-xxx
=Dividends
xxx
-STC credits 64J (1)
-Sunset Clause STC credits Fall away on 1 April 2015 (S 64J (5)
---=Balance
xxx
Dividends paid to, are not exempt
Natural persons
Trusts
Foreign companies are not exempt
-Dividends paid to, are exempt:
-Companies
-Pension, provident and retirement annuity fund
=Total amount subject to dividends tax

-xxx
-xxx
xxx

Dividends tax is taxed at 15%

-The dividend consists of a distribution of an asset in specie, therefore the company distributing
the dividend is liable for dividends tax
-The dividend is declared by S 64E (2)

-The dividend is deemed to have been paid on the last day of that year of assessment