Dividends tax is payable at a rate of 20% with effect from 22 February 2017 on dividends paid by companies that are residents (other than headquarter companies). Dividends tax is also payable on a foreign dividend to the extent that the foreign dividend does not constitute the distribution of an asset in specie and it is paid by foreign companies in respect of listed shares. This rate is, however, subject to a reduction in terms of the various DTAs. Although dividends tax is part of the Act, it is a separate tax from normal tax. Generally speaking, a dividend will be subject to dividends tax or normal tax, not both. Dividends from a South African source received by or accrued to holders of shares are exempt from normal tax; however, there are some exceptions to this rule. A dividend is exempt from dividends tax if the beneficial owner is a person that is not a resident and the dividend is paid by a foreign company in respect of a listed share. The non-resident beneficial owner must submit the relevant declaration forms available on the SARS website to the company or regulated intermediary for dividends tax not to be withheld from the dividend.