Dividends Subject to Income Tax

You can use the Dividends Subject to Income Tax system item to add this payment to an employee's payslip – individually or in bulk.

Before you start

You'll need a SARS tax directive document for the dividend payout.

👉 How-To Guides

How to add the Dividends Subject to Income Tax item

Individually

1. Go to Employees, and select the relevant employee.
2. Next to the Payslip Inputs heading, click the Add button.
3. Click Dividends Subject to Income Tax (under Income).
4. Complete all the fields:
   • Directive Number
   • Directive Issue Date
   • Directive Income Source Code
   • Directive Income Amount
   • Amount of Tax to Deduct (from Tax Directive)
5. Click Save.

In bulk

1. Go to Employees > Bulk Actions.
2. Under Payroll Inputs, click Payslip Inputs.
3. Confirm that your filters are correct (Pay Point, Pay Frequency, and Period).
4. Click the first drop-down, and select Dividends Subject to Income Tax (under Income).
5. In the Add column, check the boxes for the relevant employees.
6. Complete all the fields:
   • Directive Number
   • Directive Issue Date
   • Directive Income Source Code
   • Directive Income Amount
   • Amount of Tax to Deduct (from Tax Directive)
7. Click Save.

📌 Quick References

Item details

System item name

Dividends Subject to Income Tax

Category

Income

SARS code(s)

3719 / 3720 / 3721

Frequency

Once-off (doesn't carry forward to the next payslip)

Entry method(s)

Individual and bulk

Use case example

Recording dividends from employment-related share schemes.

Statutory deductions

Subject to PAYE?

Yes

Taxable amount

Specified on the tax directive from SARS.

Subject to SDL?

No

Subject to UIF?

Yes

🔍 FAQs

Do I need to complete all the fields when I add the Dividends Subject to Income Tax item?

Yes. The system needs this information to prevent errors during the bi-annual filing period, specifically when importing tax certificates into eFiling/e@syFile.

Why isn't the Dividends Subject to Income Tax item showing when I try to add it?

Click the Add button next to the Payslip Inputs heading (not the Regular Inputs one). If you've already added the item, it should display in the Payslip Inputs section.