Under Dividends Tax, dividend payments to foreign residents may be subject to a reduced rate where the relevant Double Taxation Agreement (DTA) between South Africa and their country of residence provides for such. This normally requires the foreign beneficial owner to be a company and to hold between 10% and 25% of the share capital of the South African company paying the dividend. In order to qualify, the foreign resident needs to declare their status (by way of a similar “declaration” and “undertaking” referred to above) to the company declaring the dividend or the regulated intermediary involved – if they do not the withholding agent is required to withhold tax at the full rate (with similar refund rules as explained in par 6 above being applicable). Generally speaking, reduced rates were not possible under Secondary Tax on Companies.