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Income Tax Act, 1962 (Act 58 of 1962)

Chapter II: The Taxes

Part VIII : Dividends Tax

64L. Refund of tax in respect of dividends declared and paid by companies

 

 

(1)        Notwithstanding the provisions of Chapter 13 of the Tax Administration Act, if—

(a) an amount is withheld by a company from the payment of a dividend in terms of section 64G(1);
(b) a declaration contemplated in subsection (2)(a) or (3) of that section in respect of that dividend is not submitted to the company by the date contemplated in the relevant subsection; and
(c) both the declaration and the written undertaking contemplated in section 64G(2)(a) or (3) are submitted to the company within three years after the payment of the dividend in respect of which they are made,

[Paragraph (c) amended by section 15(1)(a) of Act No. 21 of 2012]

so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable to the person to whom the dividend was paid.

 

(1A)        If-

(a)        an amount is withheld by a company from the payment of a dividend in terms of section 64G(1); and

(b) a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N,

so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the payment of the relevant dividend.

[Subsection (1A) inserted by section 15(1)(b) of Act No. 21 of 2012]

 

(2) Any amount that is refundable in terms of subsection (1) or (1A) must be refunded by the company that withheld that amount to the person to whom the dividend was paid-
(a) from any amount of dividends tax withheld by that company within a period of one year after the submission of the declaration contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A); or
(b) to the extent that the amount that is refundable exceeds the amount of dividends tax withheld as contemplated in paragraph (a), from an amount recovered by the company from the Commissioner in terms of subsection (3).

[Subsection (2) amended by section 15(1)(c) of Act No. 21 of 2012]

 

(3) Subject to subsection (4), if any amount is refundable to any person by a company in terms of subsection (1) or (1A) and that amount exceeds the amount of dividends tax withheld as contemplated in subsection (2)(a), the company contemplated in subsection (2) may recover the excess from the Commissioner.

[Subsection (3) amended by section 15(1)(c) of Act No. 21 of 2012]

 

(4) No amount may be recovered in terms of subsection (3) if the company submits the claim for recovery to the Commissioner after the expiry of a period of four years reckoned from the date of the payment contemplated in subsection (1)(a) or (1A)(a).

[Subsection (4) amended by section 15(1)(c) of Act No. 21 of 2012]