Frequently Asked Questions Brochure
Click here to access the Dividend Tax: Exemption from Tax form
Click here to access the Dividend Tax: Reduced Rates form
Dividends Tax was introduced in South Africa with effect from 1 April 2012 as a replacement for Secondary Tax on Companies (STC). In practical terms, where investors used to receive dividends that had already been taxed, now investors receive the full dividend value and the Dividends Tax (15%) is withheld as part of the income distribution process.
We remind you that certain entities may be exempt from Dividends Tax or may be entitled to pay a reduced rate, provided that the required declaration and undertakings have been provided to STANLIB.
However, if we are not in possession of the signed declaration, we are obliged to deduct the maximum rate of 15% on all local dividends paid. Investors may claim a refund from STANLIB within three years from the date that tax was withheld. It is the investor’s obligation to notify STANLIB should their tax status change.
Please speak to your financial adviser to fully understand the implications of this tax on your investment.
Alternatively contact our call centre on 0860 123 003.