Jupiter Ltd (resident company) declared a cash dividend of R2,000,000 on 28 February 2025, payable on 15 March 2025. One shareholder, Orion Trust, a South African resident trust, received R400,000. The trust distributed the full amount to its beneficiaries on 30 June 2025, who are natural persons. Assume no declarations were submitted to Jupiter Ltd. Which of the following correctly reflects the dividends tax implications?

Question

Accepted Answer

Jupiter Ltd must withhold dividends tax of R80,000 (20%) from Orion Trust, as the trust did not submit an exemption declaration.

Answer

The trust is exempt under section 64F because it is a resident trust.

Answer

The dividends tax liability transfers to the beneficiaries since the trust distributed the dividend within the same tax year.

Answer

The beneficiaries, being natural persons, are liable for dividends tax upon distribution by the trust.

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Jupiter Ltd (resident company) declared a cash dividend of R2,000,000 on 28 Febr...

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