Page 17 - Nexia SAB&T Trust Guide 2022

Summary of tax on special trusts

Natural Special Special
person trust trust
Type A Type B
For Income Tax:
Taxed at individual rates:
sliding scale 18% to 45% ✔ ✔ ✔
Interest exemption ✔ ✘ ✘
Local dividend exemption ✔ ✔ ✔
Foreign dividend exemption ✔ ✔ ✔

S 10A exemption (Purchased ✔ ✘ ✘
annuities)
Medical tax credits ✔ ✘ ✘
Normal age rated tax rebates ✔ ✘ ✘
For Capital Gains Tax:
Inclusion rate of 40% ✔ ✔ ✔
Annual R 40 000 exclusion ✔ ✔ ✘

R 2 million primary residence ✔ ✔ ✘
exclusion
Personal use asset exclusion ✔ ✔ ✘
Compensation for injury, illness ✔ ✔ ✘
and defamation exclusions

15