Page 40 - Nexia SAB&T Business in South Africa Guide 2024

a flat rate of 20% on the first R30 million donation. Donations tax on donations
in excess of R30 million for the preceeding 12 months will be 25%. Certain
donations are exempt, and non-residents are not liable for donations tax.
Dividends Tax
Dividends tax is a tax levied on the shareholder at a rate of 20% on dividends
paid. However, where a dividend in specie is paid, dividends tax is levied on the
company declaring the dividend. Dividends tax is normally withheld by the
company paying the dividend, and is payable at the end of the month following
the month in which the dividend was paid.
A dividend is exempt from dividends tax if the dividend is not a dividend in
specie and the beneficial owner is:
■ A SA company.
■ The Government and various quasi government institutions.
■ Public Benefit Organisations.
■ Environmental rehabilitation trusts.
■ Pension, provident and similar funds.
■ Medical Schemes.
■ A shareholder in a registered micro business (only the first R200 000 of
dividends paid during a particular year of assessment).
■ A non-resident and the dividend is paid by a South African Listed
non-resident company.
Secondary Tax on Companies (‘STC’) Credits
If a company has STC credits at the effective date of the Dividends Tax regime
these STC credits must be used before or on 31 March 2015 (i.e. within 3 years
from the effective date).
Securities Transfer Tax
The tax is imposed at a rate of 0.25% on the transfer of listed or unlisted
securities. Securities consist of shares in companies or member’s interests in
close corporations.

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