I have a client who wants to know if the must pay the capital gains tax as we pay dividends tax.ie 1 month after the declaration ? should it be included in the first provisional tax payment?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
The RSA doesn’t have a stand-alone capital gains tax. A ‘taxable capital gain’, which would include all the capital gains for the taxpayer for the year of assessment, is included in the taxable income of the person – see section 26A of the Income Tax Act. It is only where the seller is not a resident, where section 35A applies, that the normal tax is paid before the end of the year of assessment. In all other instances, the taxable capital gain is taxed on assessment.
If the individual is a provisional taxpayer, the taxable capital gain must be included in the estimates of taxable income.