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Home/Calculators/Dividends Tax Calculator

Dividends Tax Calculator

Calculate dividends withholding tax (DWT) at the standard 20% rate or reduced DTA rates. See your net dividend after tax for South African shareholders.

Updated March 2026 · Current SARS rates

Instant DWT Calculation

Calculate dividends withholding tax at the standard 20% rate or reduced DTA rates in seconds

DTA Rate Support

Select reduced withholding rates for shareholders in countries with Double Taxation Agreements

Exemption Check

Determine if you qualify for DWT exemption as a SA company, retirement fund, or PBO

Dividends Tax Calculator

Enter your dividend details to calculate withholding tax

R

The total dividend declared before tax

Select the applicable withholding tax rate

SA companies, retirement funds, and PBOs are exempt

Ready to Calculate

Enter your gross dividend to see the withholding tax and net payout

Double Taxation Agreement (DTA) Rates

Reduced withholding tax rates for shareholders in countries with DTAs with South Africa

CountryDWT RateConditions
United Kingdom5% - 15%5% if ≥10% shareholding, 15% otherwise
United States5% - 15%5% if ≥10% shareholding, 15% otherwise
Netherlands5% - 10%5% if ≥10% shareholding, 10% otherwise
Mauritius5% - 15%5% if ≥10% shareholding, 15% otherwise
Germany7.5% - 15%7.5% if ≥25% shareholding, 15% otherwise
Canada5% - 15%5% if ≥10% shareholding, 15% otherwise

Standard rate comparison:

Standard DWT rate: 20% on all dividends declared by SA companies

DTA benefit: Shareholders in treaty countries may claim a reduced rate by submitting a declaration

Who is Exempt from DWT?

The following beneficial owners are exempt from dividends withholding tax

SA Resident Companies

Inter-company dividends between South African resident companies are fully exempt from DWT

Retirement Funds

Pension funds, provident funds, and retirement annuity funds registered in South Africa are exempt

Public Benefit Organisations (PBOs)

Section 30 approved public benefit organisations are exempt from DWT on dividends received

Micro Businesses Under Turnover Tax

Qualifying micro businesses registered for turnover tax are exempt from DWT

Government & Exempt Entities

National, provincial and local government, as well as certain exempt entities listed in Section 10(1)

Important:

To claim an exemption, the beneficial owner must submit a written declaration and undertaking to the company paying the dividend before the dividend is paid. Without this declaration, the company must withhold DWT at the standard 20% rate.

Dividends Tax Calculator FAQs

Common questions about dividends withholding tax in South Africa

Dividends withholding tax (DWT) is a 20% tax withheld at source on dividends declared by South African resident companies. The company declaring the dividend is responsible for withholding the tax and paying it to SARS on behalf of the shareholder. DWT was introduced on 1 April 2012, replacing Secondary Tax on Companies (STC).
The company declaring the dividend withholds the tax from the dividend payment and pays it to SARS. The shareholder receives the net dividend after tax has been deducted. The company must submit a DWT return and payment to SARS by the last business day of the month following the month in which the dividend was paid.
Yes. South African resident companies are exempt from dividends withholding tax on inter-company dividends. This means if a company receives dividends from another SA company, no DWT is withheld. However, the exemption must be declared — the beneficial owner must submit a declaration and undertaking (DWT exemption form) to the company paying the dividend.
Yes, dividends withholding tax is a final withholding tax. This means the shareholder does not need to include the dividend in their income tax return (it is not subject to further taxation). The 20% withheld is the final tax liability on that dividend income. This makes it simpler than income tax, where provisional payments and assessments apply.
The decision depends on your marginal income tax rate versus the effective dividend tax rate. Salary is deductible by the company (reducing company tax at 27%) but taxed in your hands at up to 45%. Dividends are paid from after-tax profits (27% company tax) plus 20% DWT on the remainder. The combined effective rate on dividends is approximately 41.6% (27% + 20% of 73%), which may be lower than your marginal income tax rate if you earn above roughly R700,000.

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Important Disclaimer

Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.