Taxes and Tax rates in South Africa

Transfer Duty

Transfer duty is a tax determined by the government on transfer of ownership of property. The rates are…

No duty up to R500, 000 (£35,512)

R500, 001 – R 1,000,000 (£71,024) rate of 5%

R1, 000,001 and over a rate of 8%.

All rates are on the based on the selling price of the property.

Stamp Duty

Stamp duty is approximately 0.2% of the mortgage amount.

Capital Gains Tax (CGT)

The first R1, 000,000 on any financial gain on the first property you own in South Africa is exempt from CGT.

The proportion of any gain, included in taxable income is 25% for an individual person and 50% for companies, businesses and family trusts.

CGT applies to both residents and non-resident’s in South Africa for immovable property.

Income tax

You will have to pay income tax if you stay if South Africa for more than 183 days per annum.

The tax year is from 1st of March – 28th/29thFebruary.

The income tax rates are…

Up to R74, 000 taxed at 18%

R74, 001 – R115, 000 taxed at 25%

R155, 001 – R195, 000 taxed at 30%

R195, 001 – R270, 000 taxed at 38%

Over 271,001 taxed at 40%