Dividends declared in your business
A few basic things to consider when you would like to declare a dividend in your business is:
- Dividends should only be declared if the company is solvent. If the company is insolvent then the company runs the risk of contravening the companies act
- Dividends should be disclosed in the financial statements of the companies. This would assist the company in future business dealings and financial transactions
- Dividends should be declared to SARS when it is paid and dividends tax of 20% should be paid within a month of dividend payments to shareholders
- Remember to read and understand the Memorandum of Incorporation before declaring dividends as there might be restrictions on the dividend payments or terms that needs to be adhered to
- Dividends are declared from Net Profits. This means the profits of the company after company income tax.
If you would like to find out more please do not hesitate to contact us on 0116581324 or firstname.lastname@example.org