Set withholding tax exemptions separately for dividends and interest

We have the functionality on the system to specify whether a client is withholding tax exempt or not. This setting is applicable for dividend withholding tax and interest withholding tax. This option is set under the tax details section on the client’s profile.

Now we built the functionality to set the withholding tax exemptions separately for dividends and interest. You can set as per the screenshots below.

Please note that these exemptions are also dependant on how the product and distribution categories are set up, i.e. whether the product and/or distribution category is set to deduct withholding tax or not.

If you select exempt, you can also select Reason for interest tax exemption and Reason for dividend tax exemption:

The list of available reasons is configurable. Navigate to System -> Countries -> select the relevant Country -> more actions -> Reasons for Dividend Tax Exemption or Reasons for Interest Tax Exemption:

From this screen you can add (blue plus) or remove (red cross)  any of the reasons:

When adding a new reason you can provide a Code and a Reason:

These reasons for tax exemption will also populate in the SARS Distribution file (Bulk Processes -> Distributions -> Generate SARS file):

Last Updated on 3 months ago by Adrienne Dill