How capital gains tax works in South Africa
South Africa has no separate capital-gains rate. A slice of the gain joins taxable income: 40% for individuals and special trusts, 80% for companies and other trusts.
At top marginal rates that nets to 18% for individuals and 21.6% for companies. Everyone excludes R40,000 of yearly gain, R300,000 in the year of death, and R2 million of primary-residence gain.
Losses ring-fence against gains with yearly assessment. Emigration triggers a deemed disposal of worldwide assets except excluded property.
Tax rates at a glance
- Individual inclusion
- 40%Inclusion
- Company inclusion
- 80%
- Yearly exclusion
- R40,000
- Death exclusion
- R300,000
- Home exclusion
- R2M
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersTradersHigh earnersFamily offices
Watch out for
- Inclusion makes the marginal rate decisive. The same gain costs 7.2% in the 18% band and 18% at the top — timing disposals across tax years matters.
- Emigration is a deemed sale of worldwide assets. Leaving South Africa crystallises gains on shares and funds even with no cash received.
- Crypto is an asset for CGT, not currency. Every disposal needs rand records, and the yearly exclusion applies once across all assets.
- Home relief caps gain, not proceeds. A R2 million exclusion on a large gain still leaves the excess taxable at inclusion rates.
Frequently asked questions
Does South Africa tax capital gains?
Yes, through inclusion: 40% of individual gains joins income for 18% effective top, and 80% of company gains for 21.6%.
Are crypto gains taxed in South Africa?
Yes, as assets under normal CGT inclusion with rand records required for every disposal.
Is my home sale taxed in South Africa?
The first R2 million of primary-residence gain is excluded, with proceeds-based disregard under R2 million. Larger gains face inclusion rates.