South Africa updates guidance on taxation of foreign dividends

The South African government today released an updated version of its draft interpretation note on the taxation of foreign dividends.

Draft IN 93 (Issue 2) – The taxation of foreign dividends is updated to reflect 2017 tax law changes.

Specifically, the ratios applied in section 10B(3) to calculate the partial exemption applicable to foreign dividends were amended. Also, the circumstances in which the exemption is no longer available under section 10B(5) and section 10B(6) is amended.

Comments are requested on the draft by June 30.