<P> In the 2009 tax year 34.2% of 473,034 companies in South Africa had taxable income . Of them 56.5% of the tax was paid by 222 large companies with a taxable income in excess of R200 million . Around 50% of the collectively assessed companies were from the finance, retail and wholesale trade sectors and were responsible for over 35% of this tax . The mining and quarrying sector - consisting of only 0.3% of the companies assessed - shrunk from 8.6% in 2006 to 5.7% in 2008 reflecting the declining importance of the mining sector to the South African economy. ((rp 3 </P> <P> Tax on donations is linked to Estate Duty which was first introduced in South Africa in 1955 . It is not a tax on income but rather on the transfer of wealth but differs from estate duty in that it specifically taxes gifts and donations as opposed to inheritance . This tax subjects certain donations made by persons to a flat rate of 20% . </P> <P> Dividends Tax is a policy tax imposed by government with the aim of encouraging companies to retain profits instead of giving out dividends . It takes the form of a 20% tax on receipt of dividends given by companies and closed corporations . Some of the recent growth in this tax revenue for 2012 / 13 occurred due to increases in the value of taxable economic activities and higher compliance rates even though this tax rate remained the same . </P> <P> Prior to 1 April 2012 this tax was known as the Secondary Tax on Companies and took the form of a 10% tax on the net dividend distributed by companies and closed corporations . </P>

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