Reduced Tax on Dividends from South Africa

South Africa has introduced a withholding tax on dividends of 15%.  This applies to all companies paying a dividend.

If you hold more than 10% of the shares of that company via a tax resident company in Mauritius, this tax is reduced to 5%.  In addition, the sale of the shares would not be subject to capital gains tax.

So anyone looking to invest capital into South Africa to purchase a stake in a company, or to set up a company, should seriously consider establishing a holding company in Mauritius.

Frontière Finance has been assisting clients to set up operations into Africa from Mauritius since 1993.  Our services include company and trust formation, accounting, administration, the establishment of head office functions, captive insurance, asset administration, funds and more.

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Categories: taxes

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