/ 3 April 2012

SAICA gives companies a heads up on new tax rules

Companies need to take note of tax changes, especially regarding the new dividends tax, which has replaced the secondary tax on companies (STC), says the South African Institute of Chartered Accountants (SAICA).

Some of the implications for South African companies are that the last tax return regarding the old secondary tax on companies in respect of dividends declared on or before March 31 2012 will have to be submitted and any tax due in respect thereof paid before the end of April 2012.

“If no dividend was declared, a return is not required to be submitted,” SAICA said.

The organisation said companies should have determined their STC credits on April 1 2012.

The STC credit, SAICA said, was essentially the excess of dividends, to the extent that these dividends were subject to the secondary tax on companies that accrued to the company before April 1 2012.

“Any company paying a dividend will not be entitled to decide whether or not it is declaring the dividend out of STC credits as the credits will have to be exhausted first,” it said.

SAICA advised that while the onus was on the shareholders to inform companies paying dividends that they were exempt from dividends tax, the company would have to notify its shareholders to submit the declarations and undertakings that were required in this regard. — I-Net Bridge