DIVIDENDS PART 2 – THE “ALL NEW” AND CONTROVERSIAL DIVIDEND WITHOLDING TAX

Following suit and aligning its tax on dividends with international practice,South Africais the latest country to replace its secondary-tax-on-companies (STC) regime with the controversial dividend-witholding-tax (DWT), which came into effect on 01 April 2012. Distinction between STC and DWT STC was payable at a rate of 10% of the net dividend amount.  The net dividend amount is […]

DIVIDENDS UPDATE – PART 1

Under the Companies Act 37 of 1973, the payment of dividends was regulated under section 90.  In terms thereof, a company could pay dividends to its shareholders in their capacities as shareholders, provided that its Articles of Association authorised such payment. The Companies Act of 2008 (“the Act”), which replaced the Act of 1973, is […]