Form descriptions - Quick refund - Equities in South Africa
Information is provided here about the forms and their use in relation to the procedure for quick refund of withholding tax on income from equities issued in South Africa, as follows:
- One-Time Certificate for South African Equities and Inward Listed Securities;
- Declaration for Reduced Rate of Dividend Withholding Tax DTD(RR);
- Declaration of Exemoption from Dividend Withholding Tax DTD(EX);
- Per payment instruction
- Power of Attorney.
One-Time Certificate for South African Equities and Inward Listed Securities
One-time certification that provides information regarding the customer of Clearstream Banking stating that it holds South African Equities and/or Inward Listed Securities on behalf of one or more beneficial owners that are entitled to obtain exemption/relief at source.
How many are provided? | One per Clearstream Banking account or specified set of Clearstream Banking accounts. |
Who completes it? | Customer. |
How often is it provided? | Once. Valid until revoked. |
When is it provided? | Before applying for a quick refund. |
Copy or original? | Original required. |
Declaration for Reduced Rate of Dividend Withholding Tax DTD(RR)
This form is to be completed by the beneficial owner of a dividend who qualifies for a reduction in the dividend tax rate based on the applicable Double Taxation Treaty (DTT) with South Africa. It incorporates all the details necessary for the entitlement and calculation of the refund.
| If the eligibility conditions do not include having a minimum holding of the capital of the distributing company: | |
How many are provided? | One per beneficial owner if eligible for the DTT reduced rate under no further conditions. |
Who completes it? | Beneficial owner or customer representing the beneficial owner under Power of Attorney. |
How often is it provided? | Once. Valid five years from the signature date. |
When is it provided? | Before the first quick refund application. |
Copy or original? | Original required. |
| If the eligibility conditions do include having a minimum holding of the capital of the distributing company: | |
How many are provided? | Per payment and per beneficial owner when eligible for a DTT reduced rate based on a qualified participation in the distributing company’s holding. |
Who completes it? | Beneficial owner or customer representing the beneficial owner under Power of Attorney. |
How often is it provided? | Per quick refund application. |
When is it provided? | Before each quick refund application. |
Copy or original? | Original required. |
Declaration of Exemption from Dividend Withholding Tax DTD(EX)
With regard to South African Equities
This form is to be completed by the beneficial owner of a dividend who qualifies for a quick refund of withholding tax on South African Equities as follows:
- According to section 64E of the South African Income Tax Act, in which case the beneficial owner must specify the appropriate exemption code (A-H); or
- As a supranational entity recognised by the South African authorities or a foreign entity exempted from worldwide tax by virtue of the Diplomatic Immunities and Privileges Act (Act 37/2001) schedules 3 and 4 on the United Nations and its specialised agencies, in which case the beneficial owner must specify the "other" exemption code and provide the pre-validation of their exemption status.
With regard to Inward Listed Securities
This form is to be completed by the beneficial owner of a dividend who qualifies for a quick refund of withholding tax on Inward Listed Securities as follows:
- According to section 64E of the South African Income Tax Act, in which case the beneficial owner must specify the appropriate exemption code (A-H); or
- As a non-resident of South Africa, in which case the beneficial owner must specify exemption code (J).
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner or customer representing the beneficial owner under Power of Attorney. |
How often is it provided? | Once. Valid five years from the signature date. |
When is it provided? | Before the first quick refund application. |
Copy or original? | Original required. |
Per payment instruction
A per-payment instruction, per each tax rate required, must be provided via SWIFT (formatted MT565), or Xact web portal message, containing all mandatory information per beneficiary as per SARS requirements:
- Your account number;
- ISIN code;
- Corporate ID;
- Full name and address of the BO (to be specified in the Benodet sequence for SWIFT users or in the beneficial owner details sequence for Xact users);
- Country of residence for tax purposes (to be specified in Benodet sequence in field 94c for SWIFT users or in the beneficial owner details sequence under benf place for Xact users);
- Tax rate to apply (to be specified in field 92a for SWIFT users or in the requested withholding tax rate for Xact users);
- Holding for which the reduced/exempt tax rate applies;
For full formatting requirements of the instruction, customers should refer to:
- The MT564 event notification;
- Tax instruction formats in the CBL Customer Handbook; and
- The Xact via SWIFT User Guide.
How many are provided? | One per tax rate required. |
Who completes it? | customer |
How often is it provided? | Per dividend payment |
When is it provided? | By 10:00 CET two business days before record date |
Copy or original? | Original required. Via Xact Web Portal or by a formatted SWIFT MT565 message. |
Power of Attorney
If the customer or a third party is completing the form on behalf of the beneficial owner, a Power of Attorney must be provided.
Who completes it? | Beneficial owner. |
How often is it provided? | Per request for exemption/relief at source. |
When is it provided? | Before each request for exemption/relief at source. |
Copy or original? | Original required. |
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from equities in South Africa.