As from 1 March 2012 the inclusion rate for capital gains tax will be increased as follows:
The above changes are illustrated in the below table:
TAX PAYER INCLUSION RATE STATUTORY RATE EFFECTIVE TAX RATE Individuals 33.3% 0 - 40% 0 – 13.3% Companies 66.6% 28% 18.6% Trusts 66.6% 40% 26.7%
On the other side of the coin there were changes made in regard to the exclusions for capital gains tax that apply to individuals, which are as follows:
The other notable change was the increase in dividends tax from 10% to 15%, effective from 1 April 2012. This will affect property owning companies and close corporations when selling their assets and distributing the proceeds to its shareholders/members.