April 2011 - South Africa’s new Companies Amendment Act of 2010 comes into effect on May 1, encompassing a complete overhaul of its small and medium business component and many changes to its audit and financial review requirements.

As of 1 April 2012, dividends declared from a South African company will be subject to a 10% withholding tax (“WHT”). There will be some exemptions to the WHT in order to provide relief for companies and certain individuals. Secondary Tax on Companies, which was introduced in 1993, will no longer be applicable. This will have the effect of actually increasing the tax burden on the beneficial owner. South Africa has very favourable Double Tax Treaties (“DTT”) with many countries, Cyprus in particular, which provides for 0% WHT on dividends.

The new act addresses many current global corporate governance issues and is seen to be far ahead of any other global legislation.