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The tax rate for foreign dividends is determined according to a formula and will depend on the actual marginal rate of the taxpayer and can therefore be less than the maximum effective rate of 15%. A taxpayer who receives foreign dividends must also include the gross amount of the foreign dividends (total amount of foreign dividends gross of any foreign withholding taxes) in his or her tax return.

Foreign dividends are however in most cases (unless the shareholder holds more than 10% of the issued shares in the foreign company) subject to a partial exemption. This exemption is calculated by using the following formula: 25/40 x gross foreign dividends.

See also attached.

Thanks moon, I might send a spreadsheet your way for comment soon. If I'm following the sars examples properly you could even save on regular income tax through foreign dividend tax credits.

@Moonraker, you've got mail.

Another bummer. New since 22/02/2017.
If there is a situation where a shareholder can claim back the difference between withholding tax of 15% (DTA in UK is still at 15%) and our 20%,
5% is reclaimable from HMRC in UK, BUT seeing that it is reclaimable, an additional 5% is deducted by SARS in advance.
Problem is, there is no easy way to reclaim. My broker says:
Unfortunately, it is only for Richemont where we currently have an agreement with Computershare to claim back on behalf of clients.
Tax is currently in discussion with possible vendors to supply a similar service for Anheuser Busch (and other shares where necessary). We’ll keep you updated.
If and when the UK amend their DTA to 20% as well that will help.

Thank you Plat

This grouping http://www.shareforum.co.za/competition/com_groups.php satisfies my OCD so well. Upside down pyramid is the way to go.

Thanks Orca, that's pretty cool. When I did my taxes last week I used the annual average rate published by SARS. Nothing to pay in thanks to foreign tax witheld, but next year I'll use both and post the most favourable.

@Hamster can you rename the MyBroadband group to MyBroadband Forum Members Group to mess with Platinum

I will stab you in the neck Susan.