What is the dividends tax rate in South Africa?

South Africa levies Dividends Tax at 20% on dividends paid by resident companies. It is a withholding tax: the company (or its regulated intermediary) deducts the tax and pays it to SARS, so the shareholder receives the dividend net of 20% unless an exemption or reduced treaty rate applies.

Who is exempt from dividends tax?

Dividends paid to South African resident companies, retirement funds, and certain other exempt persons (like public benefit organisations) are fully exempt from Dividends Tax, provided the required exemption declaration is filed. This avoids cascading tax as profits move up a group of companies.

How do treaty (DTA) rates work for non-residents?

Non-resident shareholders may qualify for a reduced rate under a double-taxation agreement between South Africa and their country — commonly 5%, 10% or 15% instead of 20%. The reduced rate applies only if the shareholder files the required declaration and undertaking with the company before payment.

Is dividends tax the same as income tax on dividends?

No. Dividends Tax is a separate final withholding tax borne by the shareholder, not added to your income tax assessment. Once 20% (or the treaty rate) is withheld, the local dividend is generally not taxed again in your hands as a resident individual.

Does this apply to foreign dividends?

No. This calculator covers Dividends Tax on dividends from South African resident companies. Foreign dividends received by SA residents are taxed differently — included in income with a partial exemption — and aren't subject to SA Dividends Tax withholding.

South Africa Dividend Tax Calculator

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Dividends from South African companies are subject to a final withholding tax — Dividends Tax — deducted before you receive the money. This calculator applies the standard 20% rate, the reduced treaty rates for non-residents, and the full exemptions for SA companies and pension funds to show your net dividend.

How it works

The tax is a simple withholding on the gross dividend, with the rate set by the recipient’s status:

rate = 20%   for a resident individual
       0%    for an exempt SA company / pension fund
       treaty rate (e.g. 5% / 10% / 15%) for a qualifying non-resident
withheld = gross × rate
net      = gross − withheld

The company or its intermediary withholds and remits the tax to SARS, so you receive the dividend already net of the applicable rate.

Example and tips

A gross dividend of R100,000 to a resident individual has 20% (R20,000) withheld, leaving R80,000 net. The same dividend to an exempt SA company is paid in full, and to a non-resident on a 10% treaty rate has only R10,000 withheld. To claim a treaty rate or an exemption, you must file the prescribed declaration with the company before the dividend is paid — without it, the full 20% is withheld.