Corporate Tax updates

South Africa

Contributed by Cliffe Dekker Hofmeyr
New dawn for dividend-stripping rules?
  • South Africa
  • 15 March 2019

Abusive schemes whereby taxpayers retain shares for at least 18 months before they are disposed of for a nominal consideration recently came to the attention of the National Treasury, which proposed that the share buy-backs and dividend stripping rules be amended with effect from 20 February 2019. The treasury provided no guidance on the nature of the amendments, but taxpayers should expect a complicated provision that might have several unintended consequences.

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