FAQ – How are refunds handled under the Dividends Tax dispensation?

Refunds are dealt with differently under the new Dividends Tax dispensation as refunds should be claimed from and paid by the withholding agent (company or regulated intermediary) who withheld the Dividends Tax. Beneficial owners have a period of three years from the date of payment of the dividend to them to submit any outstanding documentation to the relevant party and claim a refund. Withholding agents should utilise any future Dividends Tax withholdings made by them as a source for the refunds. In limited circumstances (i.e. where the company was the withholding agent and future withholdings are insufficient) the withholding agent may make a recovery claim from SARS (i.e. no direct refund claims by beneficial owners are allowed).