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Thread: Foreign Dividends Tax

  1. #1
    New Member
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    Sep 2017
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    Foreign Dividends Tax

    Good day,
    according to the IT3(B) tax statement that I received from my stockbroker, I have derived foreign dividends from my investments on the JSE (in my capacity as a natural person). In the interest of filing my tax return correctly, I have perused some content on the web relating to foreign dividends tax and I established that foreign dividends are not subject to local dividends withholding tax, instead they form part of an individual's gross taxable income. Foreign dividends tax credits also seem to exist.

    My questions:

    1. How does one determine the value of foreign dividends tax credits for each investment that derived foreign dividends?
    2. Can one simply use the IT3(B) tax statement received from one's stockbroker as the sole information source used to populate the foreign dividends tax section of one's tax return?

    Additional information:
    The securities from which I derived foreign dividends (as stated on the IT3(B) from my stockbroker) are: Clicks Group Limited; CoreShares PropTrax Ten ETF; CoreShares Top 40 Equally Weighted ETF; db x-trackers Eurostoxx 50 Index ETF; db x-trackers MSCI Japan Index ETF; db x-trackers MSCI World Index ETF; db x-trackers USA Index ETF; Mediclinic International PLC.
    My stockbroker is EasyEquities. I intend to file my tax return on the online SARS efiling platform.

  2. #2
    Junior Member
    Join Date
    Jul 2017
    Thanked 1 Time in 1 Post
    The calculation works as follows:

    1. (Total gross foreign dividend receives) x 26/41 = Taxable foreign dividend - (This is how it will get assessed by SARS)
    2. You will get the foreign dividend tax paid as a rebate ( You must complete this on your return)

    Only document required as proof is your certificate received from EasyEquities.

    Hope this helps.

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