Income Tax Act, 1962 (Act No. 58 of 1962)

Chapter II : The Taxes

Part VIII : Dividends Tax

64M. Refund of tax in respect of dividends paid by regulated intermediaries
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(1)Notwithstanding the provisions of Chapter 13 of the Tax Administration Act, if—
(a)an amount is withheld by a regulated intermediary from the payment of a dividend in terms of section 64H(1);
(b)a declaration contemplated in subsection (2)(a) or (3) of that section in respect of that dividend is not submitted to the regulated intermediary by the date contemplated in the relevant subsection; and
(c)both the declaration and the written undertaking contemplated in section 64H(2)(a) or (3) are submitted to the regulated intermediary within three years after the date of payment of the dividend in respect of which they are made,

[Section 64M(1)(c) substituted by section 7(a) of the Tax Administration Laws Amendment Act, 2017 (Act No. 13 of 2017)]

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 regulated intermediary from the payment of a dividend in terms of section 64H(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 date of payment of the relevant dividend.

[Section 64M(1A) substituted by section 7(b) of the Tax Administration Laws Amendment Act, 2017 (Act No. 13 of 2017)]

 

(2)Any amount that is refundable in terms of subsection (1) or (1A) to the person to whom the dividend was paid must be refunded by the regulated intermediary that withheld the amount contemplated in subsection (1)(a) or (1A)(a)—
(a) from any amount of dividends tax withheld by the regulated intermediary within a period of one year after the submission of the declaration as 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 regulated intermediary from the Commissioner in terms of subsection (3).

[Section 64M(2) substituted by section 4(a) of the Tax Administration Laws Amendment Act, 2022 (Act No. 16 of 2022), Notice No. 1542, GG47827, dated 5 January 2023]

 

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

[Section 64M(3) inserted by section 4(b) of the Tax Administration Laws Amendment Act, 2022 (Act No. 16 of 2022), Notice No. 1542, GG47827, dated 5 January 2023]

 

(4) No amount may be recovered in terms of subsection (3) if the regulated intermediary 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).

[Section 64M(4) inserted by section 4(b) of the Tax Administration Laws Amendment Act, 2022 (Act No. 16 of 2022), Notice No. 1542, GG47827, dated 5 January 2023]