Recent Changes to South African Dividend Withholding Tax
Prior to 1 April 2012 there was no South African withholding tax on dividends [paid by a South African company] but there was a tax imposed on the payer of the dividends called Secondary Tax on Companies (STC). From 1 April 2012 the STC has been abolished but dividends paid to individuals and foreign persons will be subject to a 15% dividends withholding tax. This is subject to the provisions of any applicable tax treaty. Barclays will therefore pay the dividends net of this withholding tax where applicable and it is the recipient's responsibility to deal directly with the overseas tax authority if they wish to pursue a treaty reclaim.
1. Am I able to reclaim the South African tax which has been applied to my dividend?
A full or partial refund of withholding tax may be available in certain circumstances, depending on your place of residence, (beneficial) ownership, related refund applications and evidence provided. If you have any queries regarding your tax position, please contact a professional tax advisor.
2. How can I reclaim the South African tax applied to my dividend?
If you are eligible and wish to reclaim the withholding tax applied to your South African dividend payment you can request an R189 form from us. You can contact us by telephoning 0800 279 6551 / 0141 352 3909 and also by secure email by logging into your account and selecting Contact Us. In order for you to reclaim the above tax we will provide a document with the relevant information and return it to you, in turn you will be responsible for reclaiming the withholding tax from the relevant tax office.