Estate Duty, Donations Tax and Capital Gains Tax

Estate duty

A basic deduction of R 3.5 million is allowed in the determination of an estate's liability for estate duty as well as deductions for liabilities, bequests to public benefit organisations and property accruing to surviving spouses.

A flat rate of 20% is levied on balance of estate on all property of residents and SA property of non-residents.

Donations tax

The threshold below which no donations tax is payable is R100 000. Thereafter a 20% flat rate of value on property is payable.

In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts not exceeding R 10 000 p.a. in total.

Dispositions between spouses and donations to certain public benefit organisations are exempt from donations tax.

Capital gains tax

The annual capital gains tax exemption for individuals has been increased to R30 000. The monetary threshold below which no capital gains tax is imposed at death is R300 000.

All shares disposed of after three years will trigger a capital gains tax event.