Page 34 - Nexia SAB&T Business in South Africa Guide 2024

Withholding tax on acquisition of property from non-resident
The purchaser must withhold CGT on the purchase price where assets are
purchased from a non-resident except where the amount payable by the
purchaser is less than R2 million. The amount withheld is an advance tax in
respect of the sellers’ liability for CGT.
The following withholding tax rates are applicable and are based on the proceeds
on disposal:

NON-RESIDENT SELLER 2023 2024 2025
Natural person 7.5% 7.5% 7.5%
Company 10% 10% 10%
Trust 15% 15% 15%

SARS reporting requirements for trustees
The South African Revenue Service (SARS) has increased the reporting
requirements for trustees of resident trusts. Trustees, as representative taxpayers
for a trust, are required to submit an IT3(t) form to SARS electronically – relating
to the trust for which he or she acts as trustee.
The trustees will be required to supply information about all distributions made
from the trust to beneficiaries or other persons (in respect of any amount
vested in a beneficiary including income (net of expenditure), capital gains and
capital amounts distributed by 30 September during the preceding tax year of
assessment, which ended at the end of February of the same year.

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