FAQ – What is the Dividends tax payment process at a glance

 

   SECONDARY TAX ON COMPANIES

 

DIVIDENDS TAX

 

Payment date

 

 

End of month following month wherein cycle ends

 

 

End of month following month wherein the Dividends Tax is triggered

 

 

Returns

 

 

To accompany payments of tax only

 

 

To be submitted in respect of all dividend payments and receipts (where the recipient is exempt)

 

 

Failure to withhold / pay

 

 

Remains company’s liability

 

 

Could become liability of “person” who failed to withhold / pay

 

 

Personal liability

 

 

No specific provision

 

 

Unlisted companies: the person who controls / regularly involved in financial affairs & shareholder / director is personally liable for tax, additional tax, penalty and interest for which the company or RI is liable 

Estimated assessments

 

Yes

 

 

Yes 

Failure to pay on time

 

 

Interest accrues on a daily basis

 

 

Interest accrues on a daily basis

Assessment & Recovery of tax

 

 

Provisions re assessment & recovery of normal tax & additional tax apply

 

 

Provisions re assessment & recovery of tax & administrative penalties apply

 

Refunds

 

 

Normal refund provisions (section 102) applied to refunds claimed from SARS

 

 

Withholdings by company to be refunded from:

Future withholdings by company (one year)

Excess to be claimed from SARS (after oneyear)

Claims to be made within three to four years of dividend payment date

Withholdings by RI to be refunded from:

Future withholdings by RI (any withholding)

No recovery from SARS possible

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