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Are private companies obliged to issue IT3(b) certificates to their shareholders for dividends?

09 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

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.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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