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Dividends: local and foreign
Local dividends have 20% dividends tax taken off before you're paid, and that's the end of it. Foreign dividends are partly added to your income, so the most you pay is also 20%.
Tax on your dividendsR3,378
- Dividends tax on local dividends (20%) · withheld by the companyR2,000
- Foreign dividends added to income · 20/45 of themR4,444
- Income tax on foreign dividendsR1,378
- TotalR3,378
How it works, with your numbers
- Local: 20% of R10,000 = R2,000, already taken off.
- Foreign: 20/45 of R10,000 = R4,444 is added to your income.
- Extra income tax: R1,378 (13.8% of the foreign dividends).
Good to know
- Tax already paid in the other country may be credited against SA tax, within limits.
- Declare foreign dividends on your return: SARS gets information from other countries.
Uses SARS rates for the 2027 tax year. For illustration only. This is a guideline to help you plan, not tax advice: a registered tax practitioner must review and approve the final figures before you file.