Tax and SARS knowledge base
How do I activate Dividends Tax on an eFiling organisation profile?
How do I activate Dividends Tax on an eFiling organisation profile?
Last reviewed:
Direct answer
SARS says an organisation must be registered for Income Tax before it can be activated for Dividends Tax on eFiling. A properly authorised user then uses the organisation profile to request the Dividends Tax service. Activation is an access step. It is not a decision that a dividend is taxable, that a declaration is due, or that a rate is correct.
What this means in practice
Begin with identity and authority. Check that the legal entity is the one that is registered for Income Tax, that its tax reference and representative records are correct, and that the person using eFiling has the necessary organisation access. A director, company secretary, finance employee and tax practitioner may have different internal roles. Do not share one user's login to solve an access problem.
SARS's eFiling guide presents Dividends Tax as an organisation tax type. That means the service is connected to the entity profile, not merely to the individual who happened to register an eFiling account. If an organisation is missing from the user profile, correct the organisation-link or representative issue first. Repeatedly trying to activate a service through the wrong profile can create confusion and delay a filing.
Activation should be completed before a transaction becomes urgent. It is sensible to test that the service is visible, record the date of activation and confirm which users can prepare and submit information. Keep a simple access register showing the authorised users and the person responsible for bank approvals.
Step-by-step
- Confirm the entity's registered name, Income Tax reference and current representative details. Use the legal entity, not a trading name or another group company.
- Log into eFiling through the authorised user's own account and select the correct organisation profile. Check that the profile belongs to the entity that may need the Dividends Tax service.
- Open the organisation's tax-type or registration area and select the option to activate Dividends Tax. Follow the current SARS screens. Screen names can change, so use the current SARS guide rather than old internal instructions.
- Supply only the requested particulars and check them before submission. Where SARS asks for supporting evidence or verification, provide legible documents through the stated channel and retain submission proof.
- Wait for the activation outcome and check that Dividends Tax appears in the organisation's available services. Keep a screenshot or confirmation reference in the compliance file.
- Assign separate preparer and approver responsibilities where practical. The user who captures data should not be the only person who releases a related payment without review.
- Before submitting any dividend transaction data, reconcile company records, shareholder information, declarations and any exemption or reduced-rate evidence. Activation does not replace those checks.
Documents and records to keep
- Income Tax registration details and proof of organisation linkage.
- Representative and eFiling user-authority records.
- Activation confirmation and screenshots of the available service.
- Internal access register, delegated roles and approval record.
- Relevant dividend resolutions and subsequent transaction data.
Important limits and exceptions
SARS says Income Tax registration is a prerequisite for Dividends Tax activation on eFiling. It does not follow that a profile with Income Tax access is automatically ready for Dividends Tax. The tax type must be activated and the user must have the appropriate organisation access.
Do not use this administrative workflow to decide complex legal issues. Whether an amount is a dividend, whether tax must be withheld, and whether an exemption or reduced rate applies depend on the transaction and supporting declarations. Treat eFiling access as one control in a wider compliance process.
When to get tailored advice
Get assistance if the entity cannot be linked, the registered representative is outdated, SARS asks for verification, a group uses several entities, or the transaction involves a non-resident, trust, nominee or treaty claim. Obtain specialist advice before filing where the tax status of the distribution is uncertain.