Capital Gains Tax

16/10/2024 - By Tiffany Mare

NON RESIDENT

If a non-resident of South Africa sells his property, he has to register as a non-resident taxpayer with SARS and will be given a tax reference number.
When the transfer is registered, the Conveyancers have to pay 5% of the gross purchase price to SARS under that reference number.
The client has to then complete a tax return with SARS showing his actual capital gain in that tax year and SARS will then assess their return.


ESTATE

Capital Gains Tax is not payable at the time of the winding up of the estate. The Capital Gain stands over and becomes the responsibility of the beneficiaries when they sell the property.



SOUTH AFRICAN RESIDENT

Primary Residence - No capital gains tax is payable on the first R2 000 000,00 nett profit that a Seller makes on the sale of his primary residence.

Other properties – Capital gains will be payable on the nett profit made.

Companies, CC\\'s and Trust - Capital gains tax is payable even if the property was used by the Seller as a primary residence.