The South African Revenue Service (SARS) has released a revised tax guide regarding capital gains tax (CGT). The tax guide provides guidance on CGT for companies and individuals for the 2017 year of assessment (YA), which covers the period from March 1, 2016, to February 28, 2017.
From October 1, 2001, CGT is effective and applies to the disposal of an asset on or after that date. For determination of the capital gains tax payable by a company the net capital gain is multiplied by the inclusion rate. The rate of CGT was 66.6% for assessment years commencing on or after March 1, 2012 and for years before that it was 50%. For the 2017 year of assessment an individual’s capital gains tax rate is 40 percent of the net capital gain.