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Tax on foreign dividends

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I transferred Rands via EE to EE USD account and bought ETF (VTI). I am considering purchasing more USD based ETF's via EE.


How do I calculate what tax I'll pay in RSA after VTI withholding tax ? or is it simply the 20% tax which means I pay double tax.  I cant find a formula anyway on the net.



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I have since made a few other enquiries. Here is my understanding:


If the ETF/share you receive dividends from trades in a country that has a tax agreement with South Africa then you can claim a rebate with SARS.


Using USA as an example: if you receive dividend income (as an individual RSA resident ) from a USA etf (VTI) bought through EE (or any broker) dollar account,  VTI will withhold 15% of the dividend paid and when EE receives the dividends income from VTI (less 15%), they have to, buy RSA law, withhold 20% dividend income. I.e. you are effectively taxed twice.


Sars allows you a tax rebate that in effect reduces your taxable income for your tax return. SARS has a bunch of rules/formulas around that which I haven't yet mastered - getting there. But believe me, SARS will make sure they get their share.....and then some.  


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I’ve just read the tax legislation with regards to dividends and this is what will happen:

1) All dividends received from foreign and local companies will be included in your gross income.
2) These dividends will then be exempt from income tax under S10(1)k of the income tax act (provided they’re not distributions from a REIT or controlled company)
3) Local dividends will have a withholding tax of 20% applied to them and thus you’ll pay 20% tax on them.
4) A rebate is claimed on foreign dividends that have had a withholding tax applied. The rebate is equal to the amount of foreign tax paid on the foreign dividend.

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