Form descriptions - Relief at source - Equities in South Africa

15.09.2020

Information is provided here about the forms and their use in relation to the procedure for exemption/relief at source from withholding tax on income from equities issued in South Africa, as follows:

  • One-Time Certificate for South African Equities and Inward Listed Securities;
  • Declaration for Reduced Rate of Dividend Withholding Tax DTD(RR);
  • Declaration of Exemption from Dividend Withholding Tax DTD(EX);
  • Power of Attorney.

One-Time Certificate for South African Equities and Inward Listed Securities

One-time certification that provides information regarding the customer of Clearstream Banking stating that it holds South African Equities and/or Inward Listed Securities on behalf of one or more beneficial owners that are entitled to obtain exemption/relief at source.

How many are provided?

One per Clearstream Banking account or specified set of Clearstream Banking accounts.

Who completes it?

Customer.

How often is it provided?

Once. Valid until revoked.

When is it provided?

Before requesting exemption/relief at source for the first time.

Copy or original?

Original required.

Declaration for Reduced Rate of Dividend Withholding Tax DTD(RR)

This form is to be completed by the beneficial owner of a dividend who qualifies for a reduction in the dividend tax rate based on the applicable Double Taxation Treaty (DTT) with South Africa. It incorporates all the details necessary for the entitlement and calculation of the exemption/relief at source.

If the eligibility conditions do not include having a minimum holding of the capital of the distributing company:

How many are provided?

One per beneficial owner if eligible for the DTT reduced rate under no further conditions.

Who completes it?

Beneficial owner or customer representing the beneficial owner under Power of Attorney.

How often is it provided?

Once. Valid five years from the signature date.

When is it provided?

Before requesting exemption/relief at source for the first time.

Copy or original?

Original required.

If the eligibility conditions do include having a minimum holding of the capital of the distributing company:

How many are provided?

Per payment and per beneficial owner when eligible for a DTT reduced rate based on a qualified participation in the distributing company’s holding.

Who completes it?

Beneficial owner or customer representing the beneficial owner under Power of Attorney.

How often is it provided?

Per exemption/relief at source request.

When is it provided?

Before each request for exemption/relief at source.

Copy or original?

Original required.

Declaration of Exemption from Dividend Withholding Tax DTD(EX)

With regard to South African Equities:

This form is to be completed by the beneficial owner of a dividend who qualifies for an exemption/relief at source from withholding tax on South African Equities as follows:

  • According to section 64E of the South African Income Tax Act, in which case the beneficial owner must specify the appropriate exemption code (A-H); or
  • As a supranational entity recognised by the South African authorities or a foreign entity exempted from worldwide tax by virtue of the Diplomatic Immunities and Privileges Act (Act 37/2001) schedules 3 and 4 on the United Nations and its specialised agencies, in which case the beneficial owner must specify the "other" exemption code and provide the pre-validation of their exemption status.

With regard to Inward Listed Securities:

This form is to be completed by the beneficial owner of a dividend who qualifies for an exemption/relief at source from withholding tax on Inward Listed Securities as follows:

  • According to section 64E of the South African Income Tax Act, in which case the beneficial owner must specify the appropriate exemption code (A-H); or
  • As a non-resident of South Africa, in which case the beneficial owner must specify exemption code (J).

How many are provided?

One per beneficial owner.

Who completes it?

Beneficial owner or customer representing the beneficial owner under Power of Attorney.

How often is it provided?

Once. Valid five years from the signature date.

When is it provided?

Before requesting exemption/relief at source for the first time.

Copy or original?

Original required.

Power of Attorney

If the customer or a third party is completing the form on behalf of the beneficial owner, a Power of Attorney must be provided.

Who completes it?

Beneficial owner.

How often is it provided?

Per request for exemption/relief at source.

When is it provided?

Before each request for exemption/relief at source.

Copy or original?

Original required.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from equities in South Africa.