Title page for ETD etd-07142011-134314
Marshall, Magda Email
A critical look at the proposed legislation on dividend tax
sekond�re belasting op maatskappye
South Africa is one of the few countries that use Secondary Tax on Companies (STC) to tax dividends that are being distributed by companies to shareholders. Due to the fact that we use this complex system that the rest of the world does not understand, this has been a big issue for foreign investors. The fact that we use STC also makes our corporate tax rate seem very high for investors.
The second issue that we have is that due to the complex nature of our definition of a dividend, there are many people avoiding STC by abusing the current definition of a dividend.
In March 2007 the minister of finance announced that STC is going to be replaced by a new Tax on Dividends and that the current definition of a dividend is also going to be replaced by a new definition.
The tax rate on dividends has already been reduced to 10% from 12.5% but the rest is still a work in progress. Companies and shareholders are however expected to start getting up to date with the changes that are in the pipeline so that the final implementation takes place smoothly. The purpose of the study is to be a guide for companies and shareholders in South Africa to help them understand the changes that are underway. It is also going to help foreign investors to see that our country is on its way to being more internationally accepted with regards to the way we tax our dividends. A literature study is going to be used to get all the relevant information. Text books, internet articles and case law will be the main sources of information.
AFRIKAANS : Suid-Africa is een van die enigste lande wat Sekond�re Belasting op Maatskappye (SBM) gebruik om dividende te belas wat deur maatskappye uitgekeer word aan aandeelhouers. Omdat ons SBM gebruik en die res van die w�reld dit nie verstaan nie, het dit baie oorsese beleggers afgeskrik om geld in ons land te bel�. Omdat ons SBM gebruik veroorsaak dit ook dat ons korporatiewe belastingkoers baie hoog lyk wanneer dit met ander lande vergelyk word.
Die tweede probleem is dat ons �n baie komplekse definisie vir �n dividend het. Daar is baie mense wat SBM ontduik, omdat hulle die wet kan misbruik.
In Maart 2007 het die minister van finansies aangekondig dat SBM vervang gaan word met Dividende Belasting en dat die huidige definisie van �n dividend ook vervang gaan word met �n eenvoudiger definisie.
Die belasting koers is reeds verminder van 12.5% na 10% maar aan die res van die voorgestelde wetgewing word daar nog gewerk. Daar word egter van maatskappye en aandeelhouers verwag om solank op hoogte te kom met die veranderinge sodat die implementering glad kan verloop.
Die doel van die studie is om �n gids te wees vir maatskappye en aandeelhouers in Suid-Afrika om die nuwe wetgewing wat op pad is beter te verstaan. Dit gaan ook buitelandse beleggers help om agter te kom dat ons land nou meer internasionaal aanvaarbaar gaan wees met betrekking tot die manier waarop dividende belas word.
�n Literatuur studie gaan gedoen word om al die nodige inligting te kry. Handboeke, internet artikels en sakereg sal die hoof bronne van inligting wees.
Marshall, M 2010, A critical look at the proposed legislation on dividend tax, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07142011-134314/ >