Category: Section 64F (ITA) – Exemption from tax in respect of dividends other than dividends comprising distribution of assets in specie

Section 64F

 

  1. Words preceding paragraph (1)(a) substituted by section 78 of Act 24 of 2011 effective on 1 April 2012.

 

  1. Paragraph (1)(h) substituted by section 104 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Paragraph (1)(i) substituted by section 72 of Act 7 of 2010 and deleted by section 78 of Act 24 of 2011 effective on 1 April 2012.

 

  1. Paragraph (1)(iA) inserted by section 72 of Act 7 of 2010 and deleted by section 78 of Act 24 of 2011 effective on 1 April 2012.

 

  1. Paragraph (1)(j) amended by section 86 of Act 22 of 2012 effective on 1 April 2012.

 

  1. Paragraph (1)(k) added by section 86 of Act 22 of 2012 effective on 1 April 2012.

 

  1. Paragraph (1)(l) added by section 86 of Act 22 of 2012 effective on 1 April 2012.

 

  1. Paragraph (1)(m) added by section 86(1)(b) of Act 22 of 2012 effective on 1 April 2012 and amended by section 86(1)(c) of Act 22 of 2012 effective on 1 January 2013.

 

  1. Paragraph (1)(n) added by section 86 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Section 64F renumbered as subsection (1) by section 86 of Act 22 of 2012 effective on 1 April 2013.

 

  1. Subsection (2) added by section 86 of Act 22 of 2012 effective on 1 April 2013 and substituted by section 104 of Act 31 of 2013 effective on 1 April 2013.

Section 64F (ITA) – Exemption from tax in respect of dividends other than dividends comprising distribution of assets in specie

Posted on by admin_kmos

64F.  Exemption from tax in respect of dividends other than dividends comprising distribution of assets in specie

[Heading of section 64F substituted by section 78 of Act 24 of 2011 and section 62 of Act 23 of 2018 effective on 17 January 2019]

(1)     Any dividend is exempt from the dividends tax to the extent that it does not consist of a dividend that comprises a distribution of an asset in specie if the beneficial owner is-

[Words preceding paragraph (a) substituted by section 78 of Act 24 of 2011 and section 62 of Act 23 of 2018 effective on 17 January 2019]

(a)     a company which is a resident;

(b)     the government of the Republic in the national, provincial or local sphere;

[Paragraph (b) substituted by section 70 of Act 43 of 2014 effective on 20 January 2015]

(c)     a public benefit organisation approved by the Commissioner in terms of section 30(3);

(d)     a trust contemplated in section 37A;

(e)     an institution, board or body contemplated in section 10(1)(cA);

(f)      a fund contemplated in section 10(1)(d)(i) or (ii);

(g)     a person contemplated in section 10(1)(t);

(h)     a holder of shares in a registered micro business, as defined in the Sixth Schedule, paying that dividend, to the extent that the aggregate amount of dividends paid by that registered micro business to all holders of shares in that registered micro business during the year of assessment in which that dividend is paid does not exceed the amount of R200 000;

(i)      a small business funding entity as contemplated in section 10(1)(cQ);

[Paragraph (i) substituted by section 72 of Act 7 of 2010, deleted by section 78 of Act 24 of 2011, re-inserted by section 70 of Act 43 of 2014 effective on 1 March 2015]

(iA)   ……….

(j)      a person that is not a resident and the dividend is a dividend contemplated in paragraph (b) of the definition of ‘dividend’ in section 64D;

(k)     ……….

[Paragraph (k) added by section 86 of Act 22 of 2012 and deleted by section 62 of Act 23 of 2018 effective on 17 January 2019]

(l)      any person to the extent that the dividend constitutes income of that person; or

(m)    any person to the extent that the dividend was subject to the secondary tax on companies;

[Paragraph (m) added by section 86(1)(b) of Act 22 of 2012, amended by section 86(1)(c) of Act 22 of 2012 and section 70 of Act 43 of 2014 effective on 1 March 2015]

(n)     any fidelity or indemnity fund contemplated in section 10(1)(d)(iii); or

[Paragraph (n) added by section 86 of Act 22 of 2012, amended by section 70 of Act 43 of 2014 effective on 1 March 2015]

(o)     a natural person or deceased estate or insolvent estate of that person in respect of a dividend paid in respect of a tax free investment as contemplated in section 12T(1).

[Paragraph (o) added by section 70 of Act 43 of 2014 effective on 1 March 2015, substituted by section 75 of Act 25 of 2015 effective on 1 March 2015]

(2)     Any dividend paid by a REIT or a controlled company, as defined in section 25BB, and received or accrued before 1 January 2014 is exempt from the dividends tax to the extent that the dividend does not consist of a dividend that comprises a distribution of an asset in specie.

[Subsection (2) added by section 86 of Act 22 of 2012 and substituted by section 104 of Act 31 of 2013 and section 62 of Act 23 of 2018 effective on 17 January 2019]