Complete guide to Capital Gains Tax (CGT) in South Africa for 2026. Learn what CGT is, when it applies, how it's calculated, exclusions, and how to report capital gains on your tax return.
Capital Gains Tax (CGT) applies when you sell assets for more than you paid for them. Understanding how CGT works, when it applies, and how to calculate it helps you comply with tax obligations and plan transactions effectively. This comprehensive guide covers everything you need to know about Capital Gains Tax in South Africa for 2026.
Definition:
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What Counts as Disposal:
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2026 Exclusion:
How It Works:
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Tax Year:
Maximize:
Gains up to R2 million on your primary residence are excluded from CGT. Only gains above R2 million are taxable.
R40,000 per year per individual for 2026. This reduces your taxable capital gains.
CGT is not a separate tax. 40% of your capital gain (for individuals) is included in your taxable income and taxed at your income tax rate.
No, some assets are excluded (like primary residence up to R2 million, personal use assets), and you have an annual exclusion of R40,000.
Yes, capital losses can offset capital gains in the same year or be carried forward to future years.
CGT is included in your annual tax return and paid when you file your return, along with your other tax.
Maintenance:
Considerations:
When Needed:
No, CGT is part of income tax. Capital gains are included in your taxable income and taxed at your income tax rate.
Capital losses can offset capital gains. If losses exceed gains, the excess can be carried forward to future years.
Yes, all capital gains should be reported on your tax return, even if they're below the annual exclusion.
The cost includes the purchase price plus any costs of acquisition, improvements, and other allowable costs.
Costs of acquisition, improvements, and disposal can generally be deducted when calculating capital gains.
Understanding Capital Gains Tax helps you comply with tax obligations and plan asset disposals effectively. By keeping proper records, understanding exclusions, and reporting gains correctly, you can manage CGT obligations. Remember that primary residence gains up to R2 million are excluded, and you have an annual exclusion of R40,000.
For assistance with CGT calculations or complex transactions, consult a qualified tax practitioner.
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Specializing in South African tax law, SARS eFiling, and tax compliance with extensive knowledge of the South African Revenue Service.