Q: Are private companies obliged to issue IT3b certificates to their
shareholders for dividends paid to them?
A: IT3(b) returns are third party returns submitted to SARS in terms of section
26 of the Tax Administration Act (TAA). However, unlike the obligation in terms
of para 13 of the Fourth Schedule of the Income Tax Act for employers to issue
IRP5, no similar obligation exists on persons to whom section 26 of the TAA
applies. This matter has previously been raised with SARS as it is quite
problematic for non-residents who are subjected to withholding taxes in SA on
interest, dividends etc.
We will again raise the
matter with SARS so that there is some legal basis and form to issue such
certificates to recipients of payments to which IT3’s apply.
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 decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.