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.