This study has established that foreign investors will benefit from the implementation of dividends tax in SA. The benefits for foreign investors are not necessarily embedded in the dividends tax legislation, but there are still benefits that can be enjoyed from applying this type of system for the taxing of dividends declared and distributed.
The objective for the implementation of dividends tax was to align SA with international tax norms and to encourage investment in SA.
This study has revealed that the introduction of dividends tax has achieved this objective. It further established that the legislation is not particularly partial towards one type of shareholder or investor but rather that dividends tax strives to increase investment opportunities in order to stimulate growth in SA.