Category: Section 64N (ITA) – Rebate in respect of foreign taxes on dividends

Section 64N

 

  1. Subsection (5) added by section 17 of Act 21 of 2012 effective on 1 April 2012 and substituted by section 6 of Act 39 of 2013 effective on 16 January 2014.

 

  1. Part VIII inserted by section 56 of Act 60 of 2008 and substituted by section 53 of Act 17 of 2009 effective on 1 April 2012.

Section 64N – Rebate in respect of foreign taxes on dividends

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64N.    Rebate in respect of foreign taxes on dividends

 

(1)     A rebate determined in accordance with this section must be deducted from the dividends tax payable in respect of a dividend contemplated in paragraph (b) of the definition of ‘dividend’ in section 64D.

 

(2)     The amount of the rebate contemplated in subsection (1) is equal to the amount of any tax paid to any sphere of government of any country other than the Republic, without any right of recovery by any person, on a dividend contemplated in subsection (1).

 

(3)     The amount of the rebate contemplated in subsection (2) must not exceed the amount of the dividends tax imposed in respect of the dividend contemplated in subsection (1).

 

(4)     For the purposes of this section, the amount of any tax paid as contemplated in subsection (2) must be translated to the currency of the Republic by applying the exchange rate used to convert the amount of the dividend in respect of which that tax is paid to the currency of the Republic.

 

(5)     A company or regulated intermediary must obtain proof of any tax paid to any sphere of government of any country other than the Republic and deducted from the dividends tax payable in terms of this section, in the form and manner prescribed by the Commissioner.