Hi,
I'm new to this site, but the dividends tax seems to be just a replacement for STC? But at 15%. I also have a business and was looking for more information on this and came across this blog post on this site which helped a lot. Do I qualify to pay Dividends Tax?
I don't understand why they changed the tax, do we not get taxed now ourselves?
Last edited by Dave A; 20-Jun-12 at 12:20 PM. Reason: unsafe link removed
Hi Marc, it's the same thing with a different name, it's 15% instead of 10% and the company distributing the dividends withholds the tax. They changed that to make it easier and quicker to collect tax and to collect more money of course, government always needs more money their tris, luxury trips, vehicles, houses and etc are becoming more expensive
---There is no traffic at the extra mile---
Actually the change was to align us with Europe and USA, where the recipient is liable for the tax and not the company.
For example the UK taxes dividends between 10 and 42.5%
USA at 15% where your marginal rate is 25% and higher
Both have a withholding tax system on dividends, like us.
With the old system, the effective tax rate on companies, assuming all profits were distributed was 35.2%. Now it is 28%.
thanks so much for all the input.
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