Div's are currently taxed via STC at 12.5%. This will reduce in October to 10%, meaning larger dividends will probably be declared. That's good news! After that, it will eventually be replaced by a withholding tax at shareholder level, also at the STC rate (10%). This means it will not form part of income, but it will be paid to the shareholders after tax, as the company will retain the tax and remit to SARS. So, in effect all companies will act as SARS agents, collecting tax for them. This is still good news as the overall tax will be less, and it makes it clearer to foreign investors, many of who did not understand STC (I think Hong Kong is the only other country in the world with STC). So we should see more foreign investment and that should push the market up. So, it's all good news, John...
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