The liability for Dividends Tax typically falls on the company or entity declaring and paying the dividend. The company or entity is responsible for withholding the tax and paying it over to the South African Revenue Service (SARS) within the specified timeframes. If you have any further questions or need more information, feel free to ask!
The beneficial owner of the dividend is liable for the Dividends Tax – normally this would be the shareholder. However, if the particular dividend consists of a distribution of an asset in specie the liability falls on the company paying the dividend (similar to the situation under STC). (REF: https://www.sars.gov.za/faq/faq-who-is-liable-for-the-dividends-tax/)

Medical schemes registered under the Medical Schemes Act of 1998 are exempt (provided the required declaration is submitted) as they fall within the definition of a “benefit fund” as defined in section 1 of the Act, which in turn is listed in section 10(1)(d)(ii) of the Act. (REF: https://www.sars.gov.za/faq/faq-are-medical-schemes-exempt-from-dividends-tax/)

The declaration and undertaking form for exemption can be obtained from the company or withholding agent who issued the dividend to the shareholders (beneficial owners). SARS will not be issuing these forms. Kindly contact the company or withholding agent if you have not received the form. (REF: www.sars.gov.za/faq/faq-as-a-beneficial-owner-where-can-i-obtain-the-declaration-and-undertaking-form-for-exemptions-for-completion/)

You only need to declare your exempt status per the declaration and undertaking form once (per company / withholding agent) and it will remain valid until your circumstances as the beneficial owner affecting the exemption change. Therefore, if you hold more than one share via the same regulated intermediary (withholding agent) you only need to complete a single form. However, if you hold shares via more than one regulated intermediary you would have to complete the form for each regulated intermediary. (REF: https://www.sars.gov.za/faq/faq-do-i-have-to-complete-a-declaration-and-undertaking-form-for-exemption-for-each-dividend-share-in-my-share-portfolio/)

Please note: Effective 20 January 2015
• A beneficial owner of a dividend in specie which is exempt has to submit a return to the Commissioner of SARS.
• A refund can now be claimed for a dividend in specie.
(REF: https://www.sars.gov.za/faq/faq-what-is-a-dividend-in-specie/)

Where a declared dividend is payable to shareholders of a company listed on the JSE Ltd the tax is triggered on the actual payment date.
In respect of unlisted companies the tax is triggered by the earlier of actual payment and the date the dividend becomes “due and payable”. (REF: https://www.sars.gov.za/faq/faq-is-there-a-difference-in-payment-dates-in-respect-of-dividends-declared-on-shares-listed-on-the-jse-and-those-on-unlisted-shares/)