In simple terms, Dividends Tax is a tax imposed on shareholders at a rate of 15% of the amount of the dividend. The tax is categorised as a withholding tax, as the tax is withheld and paid to SARS by the company paying the dividend or by a regulated intermediary (i.e. a withholding agent interposed between the company paying the dividend and the beneficial owner), and not by the person liable for the tax, i.e. the beneficial owner of the dividend.
In this guide you will find a condensed explanation of the law relevant to the dividend tax. The law is contained in Part VIII of the Income Tax Act, sections 64D – 64N.