Page 293 - SAIT Compendium 2016 Volume1

s 64G INCOME TAX ACT 58 OF 1962 s 64J
[Sub-s. (3) substituted by s. 73 (1) of Act 7 of 2010 – date of commencement: 1 April 2012.]
[S. 64G 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.]
64H Withholding of dividends tax by regulated intermediaries
(1) Subject to subsections (2) and (3), a regulated intermediary that pays a dividend that was declared by any other person must withhold an amount of dividends tax from that payment calculated as contemplated in section 64E except to the extent that—
(a) the dividend consists of a distribution of an asset in specie; or
(b) the dividend is not subject to the dividends tax by virtue of any STC credit contemplated in section 64J having been applied.
[Sub-s. (1) substituted by s. 81 (1) of Act 24 of 2011 (date of commencement: 1 April 2012) and by. s. 89 (1) (a) of Act 22 of 2012 – (date of commencement deemed to have been 1 April 2012 as well) and by s. 107 (1) of Act 31 of 2013 – date of commencement deemed to have been
1 April 2012 also.]
(2) A regulated intermediary must not withhold any dividends tax from the payment of a dividend contemplated in subsection (1) if—
(a) the person to whom the payment is made has—
(i)by a date determined by the regulated intermediary; or
(ii) if the regulated intermediary did not determine a date as contemplated in subparagraph (i), by the date of payment of the dividend,
submitted to the regulated intermediary—
(aa) a declaration by the bene cial owner in such form as may be prescribed by the Commissioner that the dividend is exempt from the dividends tax in terms of section 64F or that the payment is made to a vesting trust of which the sole bene ciary is
another regulated intermediary; and
[Sub-para. (aa) substituted by s. 89 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(bb) a written undertaking in such form as may be prescribed by the Commissioner to forthwith inform the regulated intermediary in writing should the circumstances affecting the exemption applicable to the bene cial owner in item (aa) change or the bene cial owner cease to be the bene cial owner; or
[Sub-para. (bb) substituted by s. 89 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(b) the payment is made to another regulated intermediary. [Sub-s. (2) substituted by s. 74 (1) of Act 7 of 2010 – date of commencement: 1 April 2012.]
(3) A regulated intermediary must withhold dividends tax from the payment of a dividend contemplated in subsection (1) at a reduced rate if the person to whom the payment is made has—
(a) by a date determined by the regulated intermediary;
or
(b) if the regulated intermediary did not determine a
date as contemplated in paragraph (a), by the date of
payment of the dividend,
submitted to the regulated intermediary—
(i) a declaration by the bene cial owner in such form as may be prescribed by the Commissioner that the dividend is subject to that reduced rate as a result of
the application of an agreement for the avoidance of
double taxation; and
(ii) a written undertaking in such form as may be prescribed
by the Commissioner to forthwith inform the regulated intermediary in writing should the circumstances affecting the reduced rate applicable to the bene cial owner referred to in subparagraph (i) change or the bene cial owner cease to be the bene cial owner.
[Words after para. (b) substituted by s. 89 (1) (c) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
[Sub-s. (3) substituted by s. 74 (1) of Act 7 of 2010 – date of commencement: 1 April 2012.]
[S. 64H 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.]
64I Withholding of dividends tax by insurers
If a dividend, to the extent that the dividend does not consist of a distribution of an asset in specie, is paid to an insurer as de ned in section 29A, the insurer must be deemed to be a regulated intermediary and the dividend must, to the extent that the dividend is allocated to a fund contemplated in section 29A (4) (b), be deemed to be paid to a natural person that is a resident by the regulated intermediary on the date that the dividend is paid to the insurer.
[S. 64I inserted by s. 56 (1) of Act 60 of 2008 and substituted by s. 53 (1) of Act 17 of 2009 and by s. 82 (1) of Act 24 of 2011 – date of commencement: 1 April 2012.]
64J STC credit
(1) A dividend paid by a company is not subject to the dividends tax to the extent that—
(a) the dividend does not exceed the STC credit of the
company; and
(b) the company has by the date of payment noti ed the
person to whom the dividend is paid of the amount by which the dividend reduces the STC credit of the company.
(2) The STC credit of a company is an amount equal to the sum of—
(a) the amount by which the dividends accrued to that
company as contemplated in section 64B (3) during the dividend cycle ending on the day immediately before the effective date, determined without regard to any dividend contemplated in section 64B (3A), exceed the dividends declared during that cycle by that company as contemplated in section 64B (2); and
[Para. (a) substituted by s. 90 (1) (a) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(b) the dividends accrued to that company on or after the effective date—
(i) in respect of which the company received a noti cation from the person paying the dividend of the amount by which the dividend reduces the STC credit of the company that paid and declared that dividend; and
(ii) if the noti cation contemplated in subparagraph (i) was received no later than the date that the dividend is paid,
[Para. (b) substituted by s. 83 (1) (a) of Act 24 of 2011 (date of commencement: 1 April 2012), by s. 90 (1) (a) of Act 22 of 2012 and by s. 108 (1) (a) of Act 31 of 2013 (as substituted by s. 126 (1) of Act 43 of 2014) – (date of commencement of the 2012, 2013 and 2014 substitutions deemed to have been 1 April 2012 as well).]
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS