South Africa: Dividend and interest withholding tax rates to be increased

The standard rates of withholding tax on South African dividend and interest income, due to be implemented over the coming months, will be increased from 10% to 15%.

Background

The 2012 budget, announced by the South African Ministry of Finance on 22 February 2012, includes an increase of the rates of withholding tax, on both dividends and interest, from 10% to 15%.

We announced in January that a dividend withholding tax rate of 10% was due to be implemented on 1 April 2012. It is now the case that this dividend withholding tax rate will be introduced on that date at 15% instead.

Similarly, the withholding tax on interest, foreseen to be implemented on 1 January 2013, will also be introduced at the increased rate of 15%.

Impact on customers

We are currently reviewing the operational aspects of this change with our local depository and will provide the applicable relief at source and quick and standard refund procedures as soon as these are available.

Further information

For further information, please contact the Clearstream Banking¹ Tax Help Desk on:

or Clearstream Banking Customer Service or your Relationship Officer.

1. Clearstream Banking refers to Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).