Most sellers will know the fact that certain costs need to be considered when selling a property such as bond cancellation fees says Gerhard van der Linde, Managing Directors of Seeff Pretoria East. This may include the cost of the cancellation of a bond, and clearance certificate costs from the local council, levies due to body corporates as well as the cost of compliance certificates in respect of certain installations if not already in the sellers' possession.
Potentially a major consideration could be Capital Gains Tax, and it is well worth gaining the advice from an accountant or tax adviser to guide you through this process to be prepared should the sale of the property result in a tax liability
An overview of capital gains tax in South Africa and what it means for home sellers. What is it, how much will it be, and what exclusions can you benefit from?
What is capital gains tax?
A tax on an asset being disposed of on or after 1 October 2001 for proceeds that exceed its base cost.
It is not a separate tax but forms part of income tax. No separate registration is required.
"Disposal" refers to:
What does the 2024 budget speech mean for capital gains tax?
As of February 2024, there have been no changes to the capital gains tax rate and exemptions, which are detailed below.
How is capital gains tax calculated in South Africa?
Three factors are used to calculate the tax:
So your capital gains tax = capital gain x 40% inclusion rate x marginal tax rate.
Some things are excluded from the capital gains tax
For example:
Other exclusions include: