Page 289 - SAIT Compendium 2016 Volume1

s 64C INCOME TAX ACT 58 OF 1962 s 64E
(b) the obligation is released or relieved as contemplated in subsection (2) (b);
(c) the debt is paid or settled as contemplated in subsection (2) (c);
(d) the amount is used or applied as contemplated in subsection (2) (d);
(e) the loan or advance is made available as contemplated in subsection (2) (g); or
(f) the amount is incurred as contemplated in subsection (2) (h).
[Sub-s. (6) added by s. 59 (1) (p) of Act 45 of 2003 and substituted by s. 41 (1) (i) of Act 32 of 2004.]
[S. 64C inserted by s. 34 (1) of Act 113 of 1993.]
Part VIII Dividends tax (ss. 64D–64N)
[Part VIII inserted by s. 56 (1) of Act 60 of 2008 and substituted by s. 53 (1) of Act 17 of 2009.]
64D De nitions
In this Part—
‘bene cial owner’ means the person entitled to the bene t of the dividend attaching to a share;
‘dividend’ means any dividend or foreign dividend as de ned in section 1 that is—
(a) paid by a company that is a resident; or
(b) paid by a foreign company—
[Words preceding sub-para. (i) substituted by s. 102 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(i) if the share in respect of which that foreign dividend is paid is a listed share; and
(ii) to the extent that that foreign dividend does not consist of a distribution of an asset in specie;
[De nition of ‘dividend’ substituted by s. 75 (1) of Act 24 of 2011 – date of commencement: 1 April 2012.]
‘dividend cycle’ means a dividend cycle as de ned in section 64B;
‘effective date’ means the date on which this Part comes into operation;
‘regulated intermediary’ means any—
(a) central securities depository participant contemplated
in section 32 of the Financial Markets Act;
[Para. (a) substituted by s. 102 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on 3 June 2013.]
(b) authorised user as de ned in section 1 of the Financial Markets Act;
[Para. (b) substituted by s. 102 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on
3 June 2013.]
(g) a portfolio of a hedge fund collective investment scheme; or
[Para. (g) added by s. 73 (1) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 1 April 2015.]
‘STC credit’ means an amount determined in terms of section 64J (2).
[S. 64D inserted by s. 56 (1) of Act 60 of 2008 and substituted by s. 53 (1) of Act 17 of 2009 – date of commencement: 1 April 2012.]
64E Levy of tax
(1) Subject to paragraph 3 of the Tenth Schedule, there must be levied for the bene t of the National Revenue Fund a tax, to be known as the dividends tax, calculated at the rate of 15 per cent of the amount of any dividend paid by any company other than a headquarter company.
[Sub-s. (1) substituted by s. 71 (1) (a) of Act 7 of 2010, by s. 6 (1) of Act 13 of 2012 (date of commencement deemed to have been 1 April 2012) and by s. 83 (1) (a) of Act 22 of 2012 – date of commencement also deemed to have been 1 April 2012.]
(2) For the purposes of this Part, a dividend must, to the extent that the dividend—
(c)
approved nominee contemplated in section 76 (3) of
the Financial Markets Act;
(b) consists of a distribution of an asset in specie, be deemed to be paid on the earlier of the date on which the dividend is paid or becomes due and payable.
[Sub-s. (2) substituted by s. 76 (1) (a) of Act 24 of 2011 (date of commencement: 1 April 2012) and by s. 83 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012 as well.]
(3) Where a company declares and pays a dividend and that dividend consists of a distribution of an asset in specie, the amount of the dividend must, for the purposes of subsection (1), be deemed—
(a) in the case of an asset which is a nancial instrument
listed on a recognised exchange as de ned in paragraph 1 of the Eighth Schedule and for which a price was quoted on that exchange, to be equal to the ruling price of that nancial instrument on that recognised exchange at close of business on the last business day before the date that the dividend is, in terms of subsection (2), deemed to be paid; or
(b) in the case of an asset which is not an asset contemplated in paragraph (a), to be equal to the market value of the asset on the date that the dividend is, in terms of subsection (2), deemed to be paid.
[Sub-s. (3) substituted by s. 76 (1) (b) of Act 24 of 2011 (date of commencement: 1 April 2012) and by s. 83 (1) (c) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012 as well.]
(4) (a) Where, during any year of assessment, any amount is owing to a company by—
[Words in sub-s. (4) (a) preceding sub-para. (i) substituted by s. 83 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(i) a person that is—
(aa) not a company;
(bb) a resident; and
(cc) a connected person in relation to that company;
or
(ii) a person that is—
(aa) not a company;
[Para. (c) substituted by s. 102 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on
3 June 2013.]
(d) nominee that holds investments on behalf of clients as contemplated in section 9.1 of Chapter 1 and section 8 of Chapter II of the Codes of Conduct for Administrative and Discretionary Financial Service Providers, 2003 (Board Notice 79 of 2003) published in Government Gazette 25299 of 8 August 2003;
(e) portfolio of a collective investment scheme in securities;
(f) transfer secretary that is a person other than a natural person and that has been approved by the Commissioner subject to such conditions and requirements as may be
determined by the Commissioner; or
[Para. (f) added by s. 70 (1) (c) of 7 of 2010 – date of commencement: 1 April 2012.]
(a)
does not consist of a distribution of an asset in specie and is declared by a company that is—
(i) a listed company, be deemed to be paid on the date on which the dividend is paid; or
(ii) not a listed company, be deemed to be paid on the earlier of the date on which the dividend is paid or becomes due and payable; or
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS