Supporting documents for corporate rule transactions and the dividend tax exemption
09 December 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: We please
require some guidance on the following, if you can please assist.
- Should any documentation be submitted to SARS
describing the transactions?
- If yes, are there prescribed documents and to
whom should it be sent?
exemption declaration s64G(3)
"Submit declaration as prescribed by the commissioner that
the dividend is exempt from tax s64G(3)”
- Where can we find the prescribed declaration?
- To whom must this declaration be given, is it
only to the company declaring the dividend or to SARS as well?
- If no prescribed form, are there guidelines on
how the declaration should look?
- Do you do the declaration only once per
investment or annually?
The transactions listed in section 42 – 47 of the Income Tax
Act apply automatically unless the parties elect out. An election out would therefore require some
documentation. The Act doesn’t require
this to be submitted to SARS and the only detail then required is the answer to
the questions in the IT14, of course, when SARS requires detail from the
Dividend exemption declaration s64G(3)
You can find a copy of the declaration (and other
guidelines) can be found in the guide at the following link: http://www.sars.gov.za/pages/Results.aspx?k=DTD(EX)
This declaration must be given to and be retained by the
company declaring the dividend. It will only be given to SARS if they request
it from the company.
Disclaimer: Nothing in
this query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a