Currently 20% for most shareholders (a tax treaty can reduce it) Company is responsible for withholding and paying it Exemptions apply for certain shareholders

What is Dividend Withholding Tax?

It’s a tax deducted from dividends before they’re paid to shareholders.

Think of it like this…

It’s SARS taking their share before you get yours.

Why does it matter?

Currently 20% for most shareholders (a tax treaty can reduce it)
Company is responsible for withholding and paying it
Exemptions apply for certain shareholders

Best practice

File and pay on time to avoid penalties. Keep your shareholders’ tax residency details on file so you withhold at the correct rate.