On 1 July 2021, the South African Revenue Service (SARS) published latest ABC of Capital Gains Tax for Individuals (Issue 12) and ABC of Capital Gains Tax for Companies (Issue 10).
Guide of capital gains tax for individuals
This guide provides a simple introduction to capital gains tax (CGT) at its most basic level and contains insufficient detail to accurately determine CGT under most practical situations. It should accordingly not be used as a legal reference. It applies to the 2021 year of assessment which covers the period 1 March 2020 to 28 February 2021. It covers some key definitions, basic computation, exclusions, primary residence, roll-over of capital gain or capital loss, effect of CGT on the calculation of some deductions.
Guide of capital gains tax for legal entities
This guide provides a basic introduction to capital gains tax (CGT) for companies as defined in section 1(1) of the Income Tax 58 of 1962 (the Act) and should not be used as a legal reference. It covers With respect to companies, the guidance covers core provisions of capital gains tax, determining a capital gain or capital loss, base cost of assets acquired before 1 October 2001, exclusions, roll-over of capital gain or capital loss, aggregate capital gain or aggregate capital loss, net capital gain or assessed capital loss, inclusion rate and taxable capital gain; and effective rates of capital gains tax. The guide also include updated capital gains tax rate table for different types of companies for the period 1 April 2020 to 31 March 2021, providing the inclusion rates, statutory rates, and effective rates.
