Dividends on CFDs

[sponono]

Quote from education OST brochure "Ordinary dividends and special dividends on long positions are ceded to the holder by SBSA, and as such the cash retains its exempt tax status". Can anyone confirm that they received dividends on their long CFD positions.

[SimonPB]

or maybe confirm that they are liars ??

[Rams]

yes did get dividends on long and gave some dividends back on the short!

[prancing_horse]

The question was taxable or not?, I don't trade CFD's on this platform ,so I cannot answer the question, but where I do trade them, it clearly states that dividends received on derivatives are taxable

[Rams]

read the question again......anyway dividends are not taxed on OST.....you can use it to advantage to reduce taxes on trading profits

[sponono]

the q was whether you received dividends on your CFD long.

[Rams]

yes

[sponono]

tkx

[prancing_horse]

If indeed OST pass on the Dividend in a tax free form (which I believe they all should), they are the only one I know of that do this.PSG, IG markets and Nedbank don't, they say it should be a capital gain and taxed as such. Maybe the last mentioned trading houses claim the dividend for themselves. On my IT3(b) dividends received on my CFDs are shown as *Distributions (with the following note) *Please note that distributions do not carry the same properties of dividends and ARE TAXABLE. Anyone has an answer on how dividends will be handled for SSFs now that it's traded through the JSE?. Prior to central order book, the shares (contracts) were purchased at the ruling price, less dividend, plus interest.

[Rams]

SARS will look at the intention......if you trading the shares for the dividends, it will be taxed and especially if you trying to offset trading profits by trying to claim the loss against trading profits in the same portfolio on ex-dividend day.

[prancing_horse]

I think anyone trying to convince SARS that CFDs are purchased for investing is on a hiding to nothing. CFDs are not instruments that one will holds for 3 years.I'm sure there must be something in the small print regarding the status of dividends when one signs the CFD agreement.I must admit I've never taken the trouble to read through it all, but cetainly will now.