South Africa: Implementation date for dividend withholding tax confirmed

Further to our Taxflash T11046, dated 3 August 2011, and effective

1 April 2012

withholding tax will be applicable to South African equities at a standard rate of 10%.

Background

The South African Minister of Finance has officially announced the above date, in Government Gazette N.34873, for the implementation of the withholding tax on dividends.

According to the final 2011 Taxation Laws Amendment, dividend tax will only apply to dividends declared or announced on or after 1 April 2012.

Impact on customers

We are currently reviewing the operational aspects of the new taxation with our local depository and will provide information about applicable relief at source and quick and standard refund procedures as soon as it is 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 collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and 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).