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Community


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Online Share Trading

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Tax

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Faith_1
New Contributor
Hi there.I am still new.I would like too know,when do you pay taxes on share dividend and whenever you sell your share.Do you pay taxes immediately whenever you received a dividend and whenever you sell your share.Or do you pay tax once a year or every quarter.Can anybody tell me please.
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14 REPLIES 14
Pauldelmas
Contributor
No tax on Dividends yet - but on shares sales profits and losses - See under My account your tax statement. If you do your taxes once a year -basis you just fill this in accordingly as profit or losses. You only pay tax if you make a profit on the amount of profit, but alternatively if you make a loss it can also be deducted from total income.
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sponono
Super Contributor
yeh pay your taxes mate but remember R4 billion of that has already been stolen or given to friends and relatives http://www.citypress.co.za/SouthAfrica/News/Tax-theft-shocker-20110702
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RisseN
Contributor
So if you make a profit or loss and you do efiling, do you need to attach the tax statement from Standard OST or do you just fill in the value somewhere and then give the documentation to SARS only if they request it? Also, where on your tax return would you fill in this information? Thanks.
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CHATTYCHAT
Super Contributor
You could uoload the cert, but not required - only when SARS asks for it. They have these certs nowadays anyway - they only ask for it if your figure mismatch theirs. And they ask for it to prove you wrong!
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klapka
Super Contributor
I always thought that too but last year SARS told me they did not get the share cert only the interest statement from Standard and they wanted me to confirm my profit and loss as per usual. Interesting!
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Preston
Super Contributor
I say nationalise the tax system. VIVA !
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SimonPB
Valued Contributor
err SARS is already nationalised ..
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Preston
Super Contributor
eer, i say privatise SARS, local municipality, education, SAPS and nationalise the mines lol
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THRESHOLD
Super Contributor
Nothing is that simple though - remember that dividends from reserves other than readily distributable retained income may give rise to extraneous tax implications such as CGT. Generally the company will issue a SENS regarding allocation. There can be implications re inward listings too. If you earn substantial dividend income - consult a tax accountant.
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geordie1
Super Contributor
Always good to get professional advice on tax especially if you are dealing with biggish numbers-also different for individual,trusts annd ccs/companies so its not a simple subject.Re dividends at moment tax is deducted(10% I believe) prior to being distributed to you.There is a change in the air to deduct 10% after it reaches you but has not been implimented yet.Also be sure not to get confused with property "divs"-they generally are seen as interest payments.Note preference shares divs are still tax free in your hands, Re profit on selling shares-it depends if you are seen as an investor or a trader.A trader need to declare his profit or loss yearly and is taxed in normal way-an investor-usually held onto share for 3 years or more- is taxed as a capital gain which is a lot less agressive.Some companies do not declare divs but declare a capital reduction-as far as I can see this looks to me as if it is treated as a capital gain-hope this helps rather than muddies the water
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Copper
Regular Contributor
yep. u get taxed for all profits u make based on yr marginal bracket. so if yr being taxed currently at eg 30%, yr trading profits will alsso be taxed at 30% PROVIDED THAT yr trading income added to yr regular income does not push you into a NEW tax bracket eg 35% for total income. If you make a loss, this cannot be subtracted from total income and reduce yr taxable amount. It can only be carried foward to future years to offset any profits/capital gains(NOT INTEREST INCOME) you make in future tax years(based on the discretion of sars.
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richardw
Super Contributor
This trading loss carried to future years' profit is what I expected. Obviously most aren't tax experts but can someone else confirm this? The year has been good to me and I don't want to fork out too much to mr Zuma.
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THRESHOLD
Super Contributor
Yes CGT losses c/f against CGT losses and IT losses c/f against IT losses generally speaking (SARS might review a rule etc.) Also for companies a time limit applies and the company must continue to trade in that field (or trade of that nature) as ring-fencing may apply, for aperiod not subject to interruption - as specified - individuals can carry forward their losses more liberally but ring-fencing may also apply.
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richardw
Super Contributor
Thanks, that helps.
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