Share Forum - Discuss JSE shares and join the Investor Challenge

STXIND - how you buy Naspers in your TFSA.

In the Investor Challenge, is the divi added after the 15% tax has been deducted? Because a divi paid by a REIT, in my case Resilient, is not subject to the tax.

SARS even gets us in play play land

No, Patrick. You must only take off the 30%. Not the 15% because its a REIT.

Are you taking off 30% per trade, on selling, or at the end of the year?

#Patrickmustfall  

"There are two key parts to this. Firstly, it means that the 15% dividends withholding tax that is applied to dividends paid out by ordinary shares does not apply to distributions from REITs.  Instead they are included in the recipient’s taxable income with no exemptions. So the full amount is taxed at the shareholder’s normal tax rate." http://www.moneyweb.co.za/uncategorized/reit-investments-and-tax/

Yes, Patrick. The way I understand it is the full amount, i.e. the recipient's taxable income for the year including dividends from REITs, is added up and taxed at the shareholder's normal tax rate.

Does the taxman deduct the normal tax rate for every trade? If he did, and I traded 10 times in the year, then I would pay 130% tax. I'm under the impression, as a provisional taxpayer, that all my profits and losses get added up at the end of the year, added to my other taxable income including divis from REITs, and the total taxed at my normal rate. I am fairly positive I am correct.

Hey Bread, the taxman only takes 30% of your profits when ranking you on the leaderboard. No money is actually removed from any accounts. In theory though, i should take give you 15% more cash for your REIT dividend, and then subtract 30% of that on the leaderboard only.