Hi All,

I'm new to the South African business landscape and would appreciate any advice. I'm South African, but I've been in the UK for 7 years.

My wife and I are investing in a business with a 10% shareholding

On the most part we are happy to move forward with starting a company and buying shares through it, but there is 1 question I would be very grateful if anyone could help me answer as I just can't seem to find the answer online.

This is what I know, please correct me if I'm wrong on any count:

The company will need to pay CIT on it's income, but no dividend tax will be due since it's being distributed to a company. Dividend tax will only be due when distributing dividends out of our investment company into our personal names. Also no income tax will be due on this money in our personal names. If/when we sell our shares, there will be a CGT of 28% as the capital gain will form part of the income of the company. We are entitled to reinvest any money earned by the company through dividend or sale of shares without additional tax (until that investment either produces and income or is sold itself)

The only question I can't seem to find an answer to is:

The question I have is whether our investment company will also need to pay CIT on the money earned from the dividends? It doesn't make any sense that it would need to since CIT has already been paid by the company, but I just can't seem to find anything in my basic online searches and an extra 28% tax is worth worrying about!

I'd be very grateful if anyone could tell me whether we would need to repay CIT from our company and if you don't mind, show me in some literature where it makes that clarification.

Thank you so much for your help!