Page 33 - Nexia SAB&T Business in South Africa Guide 2024

Capital Transactions
Proceeds from the sale of assets in SA, may be remitted abroad. Proceeds on the
sale of assets by emigrants will be subject to the blocked account provisions.

Dividend payments to non-residents
Dividends declared by companies are remittable to non-resident shareholders
in proportion to percentage shareholdings, subject to certain restrictions if the
dividend is declared by an affected person who has local financial assistance.
An emigrant shareholder will be entitled to dividends declared out of income
earned from normal trading activities after the date of emigration. Non-listed
companies have additional requirements to be met in order to transfer such
dividends. Dividends declared out of capital gains, or out of income earned from
normaltrading activities prior to the date of emigration, remain subject to the
blocked account provisions.

Director fee payments to non-residents
Authorised dealers may transfer director’s fees to non-resident directors
permanently domiciled outside SA, provided the application is accompanied by
a copy of the resolution of the board of the remitting company, confirming the
amount to be paid to the beneficiary.

Withholding tax
■ A withholding tax of 15% is payable when royalties from a South African
source are paid to non-residents, subject to certain exemptions.
■ A withholding tax of 15% is payable when interest from a South African
source is paid to non-residents, subject to certain exemptions.
■ A withholding tax of 15% on payments to foreign entertainers and
sportpersons for activities in SA.

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