Would anyone be so kind to explain to me what the implications of the new didvidend tax are for an individual. I am somewhat confused by the provisions under section 64 and their applicability to individuals.
previously companies paid the dividen tax on your behalf which was 10%, so effectivly any money you received was tax free. As from 1 April 2012, any dividends you receive from a listed company you will need to declare in your tax returns and these dividends are subject to a 15% tax...
Than you, so effectively the exemption that was under s10(1)(k) is no longer available? Or is the tax just a witholding tax such that SBG(OST) has to withhold nad the net is what you get or is the amount then fully gross income and thereafter taxed separately at that 15% rate?
Thando do you mind if I put in Xhosa?, sometimes English challenges me. Xa ufumana i dividends le rhafu ye15% sele itsaliwe ngoko ke ayiyi kwi gross income yakho. For the benefit of others - The 15% is withheld by your MANCO or OST (Standard bank). It is not part of the Gross Income definition.
I don't think that is right? I don't think you have to declare the dividends received. Dividends tax is a withholding tax - and shouldn't affect your overall tax status - it is the broker's responsibility to ensure it gets deducted. As to how you file for them - admittedly I have no clue, but the key here is that your tax status is not affected - to my knowledge?