Declaring dividends is often more complicated than clients expect. One of the most common mistakes is focusing only on the dividend amount being distributed, without considering the Dividends Tax that must be withheld and paid to SARS.

The Dividends Declared module in DataGrows helps firms calculate dividend tax, track due dates, maintain recipient information, and ensure that dividend declarations are captured accurately before payments are made.

The goal is simple: calculate the tax correctly before the dividend is paid, maintain the required records, and avoid missed SARS deadlines.

Why Use the Dividends Declared Module?

When a client wants to pay a dividend, there are often multiple moving parts:

Dividend resolutions
Dividend recipients
Tax calculations
Exemptions
SARS due dates
Supporting information

DataGrows pulls all of this information together into a single process.

The module helps firms:

✅ Calculate dividend tax

✅ Track SARS deadlines

✅ Store recipient details

✅ Maintain audit trails

✅ Reduce compliance risk

✅ Avoid missed submissions

✅ Improve client advice before payment is made

A Common Dividends Tax Mistake

One of the biggest risks with dividends is that clients often think in terms of the amount they want shareholders to receive.

However, Dividends Tax is generally a withholding tax.

This means that if the dividend is not calculated correctly up front:

Net payments may be incorrect
Resolutions may not reconcile
Tax calculations may need to be amended
Additional administration may arise

Using the Dividends Declared module before payment is made helps avoid these issues.

Creating a Dividend Declaration

The Dividends Declared table is a manual table.

Whenever a client intends to declare a dividend:

Navigate to Tasks Department → Tax Department → Dividends Declared
Click Add Record
Complete the relevant information
Save the record

The more information captured, the more accurate the resulting calculations will be.

Different Dividend Types

It is important to remember that dividend types are captured separately.

For example:

Cash Dividend

A dividend paid in cash to shareholders.

Dividend In Specie

A dividend paid by transferring assets rather than cash.

Each distribution type requires its own Dividends Declared record.

Pro Tip: A Cash Dividend and a Dividend In Specie should not be combined into a single declaration record.

Capturing Dividend Recipients

Once the Dividends Declared record has been saved, a new tab becomes available:

Dividend Recipients

DataGrows automatically creates recipient records for the ownership categories selected.

Examples include:

Individual Owners
Non-Individual Owners
Intermediaries

Maintaining Recipient Information

The Dividend Recipients tab provides a central place to capture information about each recipient.

This information can be used when:

Preparing SARS submissions
Completing dividend declarations
Reviewing historical distributions

Keeping this information in one place means your team no longer needs to search through multiple spreadsheets, emails, or shareholder registers.

Calculating the Dividend Tax

Once the recipient information has been completed:

Open the:

Dividends Tax

tab.

This section calculates the total Dividends Tax payable based on the information captured.

DataGrows presents the information in a format that closely mirrors the information typically required for SARS purposes.

Tracking the SARS Due Date

One of the most useful features of the module is automatic due date tracking.

As the dividend is captured:

✅ The Dividends Tax due date is calculated automatically.

✅ The due date remains visible throughout the process.

✅ A reminder appears in All Tasks Due.

This helps firms stay on top of upcoming payment and submission obligations.

Automatic Task Reminders

To reduce the risk of missed deadlines, DataGrows automatically creates reminders.

The due date appears within:

All Tasks Due

This keeps the obligation visible alongside the firm's other compliance work.

Many firms use this as their primary operational dashboard.

Additional SARS Task Protection

As an additional safeguard, DataGrows also creates a SARS Task linked to the dividend declaration process.

This provides:

✅ Additional visibility

✅ Internal reminders

✅ Follow-up tracking

✅ Compliance oversight

The purpose is simple: ensure that dividend tax obligations do not get forgotten.

Benefits of Centralising Dividend Information

Instead of storing information across:

Emails
Spreadsheets
Shareholder registers
Manual calculations

DataGrows keeps everything together in one place.

This improves:

Accuracy

Tax calculations are easier to review.

Visibility

Deadlines remain visible.

Consistency

The same process is followed each time.

Compliance

SARS obligations are less likely to be missed.

Best Practices

Capture Dividends Before Payment

Calculate the tax implications before shareholders are paid.

Maintain Recipient Information

Complete recipient details as soon as the declaration is created.

Separate Different Dividend Types

Create separate records for Cash Dividends and Dividends In Specie.

Monitor Due Dates

Review dividend tax reminders regularly.

Use the SARS Task

Leverage the additional reminder system to avoid missed deadlines.

Store Supporting Information

Keep all dividend-related records together within the declaration.

Key Takeaways

✅ The Dividends Declared table helps firms calculate Dividends Tax before payment is made.

✅ Dividend declarations are created manually when a client wishes to declare dividends.

✅ Separate records should be created for different distribution types.

✅ Dividend Recipient records are generated automatically after saving.

✅ Recipient information can be maintained centrally for SARS purposes.

✅ The Dividends Tax tab calculates the total tax payable.

✅ Tax due dates are calculated automatically.

✅ Reminders appear in All Tasks Due.

✅ Additional SARS Tasks are created to help prevent missed deadlines.

Remember: The best time to calculate Dividends Tax is before the dividend is paid, not after. By capturing dividend declarations in DataGrows first, your firm can help clients understand the tax implications, keep accurate records, and avoid unnecessary amendments, penalties, or confusion later. 💰📋✅