Dividends Tax (DWT) is the 20% withholding tax on dividends paid by South African resident companies (and certain foreign dividends). The company or its regulated intermediary deducts the tax before paying the dividend over — what hits the shareholder’s account is the net 80%. The 20% rate has applied since 22 February 2017.
Some shareholders are exempt: SA-resident companies receiving dividends from other SA companies, SA pension and retirement funds, registered PBOs, and government bodies. Foreign shareholders may pay a reduced rate under a Double Tax Agreement — typically 5% or 10% — but only if the correct exemption forms are lodged with the regulated intermediary in advance.
Because DWT is a final withholding tax for individuals, ordinary retail investors don’t declare dividends or pay extra tax on them — the 20% is the end of it. Capital gains on selling the underlying shares are separate and are taxed under CGT, not under Dividends Tax.