Since October 2001 South African tax residents have been liable for capital gains tax (CGT) onthe disposal or “deemed disposal” of assets, such as a business or a property. Events that
trigger a disposal include a sale, donation, exchange, loss, death, and emigration. For
individuals, the CGT rate is a stiff 18%. No separate registration for CGT is required. Since
CGT forms part of the income tax system, a person must simply declare capital gains and
capital losses in the annual income tax return. All capital gains and capital losses made on thedisposal of assets are subject to CGT unless excluded by specific provisions.