FAQ – How are refunds handled under the Dividends Tax dispensation?

Refunds are dealt with differently under the new Dividends Tax dispensation as refunds should be claimed from and paid by the withholding agent (company or regulated intermediary) who withheld the Dividends Tax. Beneficial owners have a period of three years from the date of payment of the dividend to them to submit any outstanding documentation to the relevant party and claim a refund. Withholding agents should utilise any future Dividends Tax withholdings made by them as a source for the refunds. In limited circumstances (i.e. where the company was the withholding agent and future withholdings are insufficient) the withholding agent may make a recovery claim from SARS (i.e. no direct refund claims by beneficial owners are allowed).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s