Section 9HB OF THE south African income tax
Section 9HB of the South African Income Tax Act deals with the taxation of foreign dividends received by South African tax residents. It determines the tax treatment of dividends received from foreign companies by South African residents and sets out the rules for the inclusion of such dividends in the taxpayer's taxable income.
Under Section 9HB, foreign dividends received by a South African tax resident are subject to income tax, with certain exemptions and deductions available under specific conditions. The section also provides guidelines for determining the taxability of foreign dividends, including the treatment of dividends received from controlled foreign companies.
Overall, Section 9HB of the South African Income Tax Act aims to regulate the taxation of foreign dividends received by South African tax residents and ensures that such income is appropriately taxed in line with the country's tax laws.