FAQ – Declaring share dividends

 A Fin24 user wants to know how his share dividends have to be declared. He writes:

Should share dividends received (the total net amount after dividends tax) be declared under amounts considered non-taxable for tax year 2013?

Marc Sevitz of TaxTim responds:

Companies and investment houses should have issued an IT3b for dividends indicating the tax paid and the amount paid out to the shareholder.

Initially there was supposed to be a section on the current ITR12 income tax return for the taxpayer to complete this. However, this has not happened yet.

Given that the taxpayer has already paid the tax to Sars in the form of the withholding amount there is no real need to enter this into the tax return.

However, it is always advisable to be completely open with Sars and so for now it would be best to include the net amount under amounts considered non-taxable” in the “exempt local and foreign dividends” box.