How To Calculate CGT In South Africa

CGT applies to all assets disposed of on or after 1 October 2001. Capital gains and losses on the disposal of a primary residence are excluded, limited to R2 million. To calculate your capital gains, subtract the base cost of your property from the value at which you sold it.

How do you calculate CGT?

Calculating CGT using the discount method

Subtract the cost base from the sale proceeds. The amount you are left with is your gross capital gain.

Deduct any eligible capital costs.

Apply any eligible discounts.

This figure is your net capital gain and will be added to your taxable income.

How much is CGT in South Africa?

Capital Gains Tax (CGT)

​Type​2022​2019​
​Individuals and Special Trusts18%​18%
​Companies​22.4%​​22.4%
​Other Trusts​36%​​36%

How much is capital gains tax on property in South Africa?

The maximum that you could pay in taxes on your capital gains in South Africa is 10% of your capital gain.

That is because the maximum tax rate is 40% and only 25% of capital gains is taxable. You will pay less than 10% of your other South African income is less than R490 000.