WHAT ARE THE TAX CONSEQUENCES FOR WAIVED DEBT?
Many natural persons or trust shareholders in companies are confronted with the unintended tax consequences of owing an amount on a loan account to the company in which they hold those shares. These tax consequences specifically relate to the “deemed dividend” which arises on interest-free loans (related to so-called “debit loans” in companies). In many cases, there is no intention to ever repay the […]
Dividends Tax exemption – The pitfalls to avoid
Dividends Tax is imposed at a rate or 15% on the receipt of dividends. It is a withholding tax, as it must be withheld and paid to SARS by the company paying the dividend. As such it is not a tax on the company but rather a tax on the recipient of the dividend. Dividends […]