DIVIDENDS TAX

[Raeesah]

Good morning all

Please assist me with dividends tax.

I have a client who paid himself a dividend from his company ( SME). How do we declare this payment to pay tax.

I have registered to company for dividends tax and filed the dividend paid out- the assessment came back as R0.00 .

is this correct?

Your advise is greatly appreciated.

[Andromeda]

The dividend is subject to a withholding tax payable by the company, which is why you submitted a dividends tax return.

I have no idea why it was not subjected to any tax, but there is no tax liability owed by the shareholder.

[Wildsniper911]

It's only in certain circumstances where no dividend tax is payable, usually when you pay dividends to a local holding company no dividend tax is payable. All SA residents (natural persons) are liable to pay dividend tax. Unfortunately for me, it was a very long time since I submitted a Dividend tax return, so I cannot specifically indicate where figures need to be entered on the form.