Page 39 - Profmark BSA Guide 2025

Exclusions
The following are the main exclusions from CGT:
■ Primary residences with capital gains up to R2 million.
■ Personal use assets.
■ Retirement benefits.
■ Long-term assurance.
■ Small business assets with capital gains up to R1.8 million (applicable when
a person is over the age of 55 where the maximum market value of the small
business assets does not exceed R10 million).
■ Annual exclusion for natural persons: R40 000.
■ Annual exclusion on death for natural persons: R300 000.
Calculation and inclusion rates
A capital gain or loss is calculated separately in respect of each asset disposed. Once
determined, gains or losses are combined for that year of assessment and if it is:
■ an assessed capital loss, it is carried forward to the following year, or
■ a net capital gain, it is multiplied by the inclusion rate and included in
taxable income.
The inclusion rates are as follows:
PERSON 2024 2025 2026
Natural person and special trust 40% 40% 40%
Company 80% 80% 80%
Trust 80% 80% 80%
Donations Tax
Donations Tax is payable by any individual living in the Republic of SA, or any South
African company or one managed or controlled in the Republic, on the value of any
gratuitous disposal of property including the disposal of property for inadequate
consideration and the renunciation of rights. Donations tax is payable at the end of
the month following the month in which the donation was made, at a flat rate of 20%
on the first R30 million donation. Donations tax on donations in excess of R30 million
for the preceeding 12 months will be 25%. Certain donations are exempt, and non-
residents are not liable for donations tax.

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