Exempt From 2025 Withholding. Dividends distributed towards a country that has concluded a tax treaty with belgium containing a qualifying exchange of information clause can be exempt from wht, subject to the same conditions as laid down in the parent. Dividends received by individuals from south african companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying.
The exempted withholding agent reports dividend payments to the foreign entity within one month after the calendar year. The new financial year 2024/2025 brings about an important opportunity for compliance and savings in the form of the withholding tax (wht) exemption.