Due to delays encountered by various stakeholders in
implementing and developing systems to administer dividend
withholding tax (DWT), which was introduced on 1 April 2012, SARS
is adopting a phased approach to enforce the new tax.
SARS' phased approach
Initially, in order to facilitate the timely payment of DWT on
dividends paid from 1 April 2012, a standardised return, DTR02 was
made available which allowed the manual capturing of DWT due.
The second phase requires transaction data to be submitted
through the submission of a Dividends Tax Transactions Information
declaration, or DTR01. SARS has now informed companies that the
DTR01 has to be completed in respect of all DTR02s previously
submitted for dividends paid after 1 April 2012. The deadline for
the submission of DTR01 forms for DWT previously declared is set
for 1 March 2013.
However, from 1 January 2013, a DTR01 must be submitted to SARS
for dividends paid on or after this date. Once the DTR01 is
successfully filed, the DTR02 must be requested via eFiling and
filed by the company or regulated intermediary paying the
DTR01 data requirements
Information regarding dividends received and dividends paid must
be supplied and will allow SARS to track and match DWT data.
For dividends paid by the company the following must be provided
for each beneficial shareholder to whom a dividend is paid:
identity number or registration number
income tax number
any criteria qualifying the beneficial owner for reduced DWT
(including an exemption from DWT)
Similarly, in order for SARS to track dividends which are exempt
from DWT, companies must declare all dividends received. The
information required for each dividend received includes:
The ISIN number of JSE listed shares on which the dividend is
The date that the dividend is declared, paid and received
The STC credit utilised per share
The dividend amount received per share
Supporting documentation required for preparation of DTR01
Signed declarations are required from the beneficial owner if
dividends are paid to a beneficial owner who is:
exempt from DWT (e.g. if the dividend is paid to a SA
or is subject to DWT at a reduced rate (e.g. if the dividend is
paid to a foreign shareholder who is entitled to a reduced rate of
DWT in terms of a double tax agreement). If a reduced DWT rate
applies, the signed declaration must state the reduced rate.
The beneficial owner is required to inform the dividend paying
company when the beneficial owner's DWT status is altered, or
when it will no longer be a beneficial owner of future dividends
SARS do not provide declaration forms to be completed by beneficial
owners. The company paying the dividend is responsible to provide a
declaration form. Contact your Grant Thornton office for assistance
when preparing such a form.
Channels for filing DTR01 and DTR02 returns
Companies paying dividends to 20 or fewer beneficial ownersmay
file their DTR01 and DTR02 returns using SARS' eFiling system
or by capturing the data at a SARS branch office.
Companies with more than 20 and fewer than 10 000 beneficial
owners will need to file DTR01 and DTR02 returns via e@syFile.
Don't delay preparing and submitting your DTR01 and
SARS have indicated that for DTR02 returns previously submitted,
the accompanying DTR01 return is to be submitted by 1 March 2013.
In order to allow for the timely payment of DWT payable on future
dividends, DTR01 and DTR02 returns are to be submitted by the end
of the month following the month during which the dividend was
Administering this newly introduced tax will undoubtedly cause
some teething problems and frustration. Some areas of concern
The DTR01 return requires information to be included which may
not have been collected from beneficial shareholders in the past.
If not obtained in time, the issuing and filing of the DWT return
(DTR02) for current dividends paid, may be delayed and result in
late submission. Such a late submission will expose the dividend
paying company to interest and penalty charges.
The DTR01 return further requires data to completed in line
with SARS' formatting requirements and should therefore not be
left to the last minute.
To avoid penalties, frustration and wasted time, start this
process as soon as possible and if you have any questions, contact
your Grant Thornton office for assistance.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
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