From 1 March 2015 (2016 tax year), a final withholding tax of 15% will be levied on interest payable to non-residents from a South African source.
Non-residents who are physically absent from South Africa for at least 182 days (2021) (183 days in 2020) during the 12 month period before the interest accrues and the debt from which the interest arises is not effectively connected to a fixed place of business in South Africa are exempt from income tax.
Dividends Tax
Individuals receiving dividends from South African firms are normally exempt from income tax, but a 20% dividend tax is withheld by the entities providing the dividends to the individuals.
Dividends from Other Countries
Most foreign dividends received by individuals from foreign corporations (shareholding of less than 10% in the foreign company) are taxable under the normal tax system at a maximum effective rate of 20%. (not dividends tax). There are no deductions for expenses undertaken to generate overseas dividends.
In South Africa, how much tax do you pay on shares?
Check out our Capital Gains Tax Calculator for more information and to help you with your calculations. Because only a fraction of the capital gain (currently 40%) is reported in taxable income, this profit (or capital gain) is taxed at a lower rate than normal income.
In South Africa, who pays the dividend tax?
Dividends Tax is a tax levied on shareholders (beneficial owners) when dividends are given to them, and is normally deducted from the dividend payment by a withholding agent (either the company paying the dividend or, where a regulated intermediary is involved, by the latter).
In South Africa, how can I avoid paying Dividends Tax?
Dividends are tax-free if the beneficial owner is a South African company, a South African retirement fund, or another prescribed exempt person.
