Form descriptions - Standard refund - Equities in South Africa
Information is provided here about the forms and their use in relation to the procedure for standard refund of withholding tax on income from equities issued in South Africa, as follows:
- Declaration for Reduced Rate of Dividend Withholding Tax DTD(RR);
- Declaration of Exemption from Dividend Withholding Tax DTD(EX);
- Power of Attorney;
- Credit Advice;
- Letter of Request to Clearstream Banking for Reclaim of South African Withholding Tax.
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 standard 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 standard refund application. |
When is it provided? | Before each standard 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 standard 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 standard 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 standard refund application. |
Copy or original? | Original required. |
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 reclaim application. |
When is it provided? | At the latest, two months before the statutory or DTT deadline, whichever is applicable. |
Copy or original? | Original required. |
Credit Advice
This form must be submitted under the letterhead of the customer or of the customer’s agent and include the respective Clearstream Banking account number. The full chain of credit advices from final beneficial owner to Clearstream Banking must be provided.
Who completes it? | Financial institution paying the beneficial owner. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest one month before the statutory deadline. |
Copy or original? | Copy is sufficient (that is, a copy of the corporate action confirmation, cash balance report or other statement). |
Letter of Request for Reclaim to Clearstream Banking for Reclaim of South African Withholding Tax
This authorises Clearstream Banking to reclaim withholding tax from the South African Revenue Service on the customer's behalf.
Who completes it? | Customer. |
How often is it provided? | Per reclaim application. |
When is it provided? | At the latest, one month before the statutory or DTT deadline, whichever is applicable. |
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.