Capital Gains Tax for Beginners

Capital gains tax is a tax on the difference between the price an asset was purchased for and the amount for which it was sold. If only it was so simple. In South Africa, there are various different capital gains tax inclusions and exclusions as well as different tax rates to be applied to different transactions and legal entity formations. This session is aimed at introducing Capital Gains Tax on an entry-level to learners who wish to gain knowledge on the subject.

Content discussed:

• Income tax framework

• Capital gains tax structure

• Net capital gain or losses

• Annual exclusion

• Assessed Capital losses.

• Aggregate capital gain / (loss)

• Calculating capital gains on disposal of as asset:

• Proceeds

• Base cost

• Base cost before 01-10-2001

• Base cost after 01-10-2001

• Base costs paragraph 26 & 27

• Specific exclusions

• Primary residence

• Exclusions and limitations of losses

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About the Presenter:

Daniel van Tonder

Daniel van Tonder is the Head of Taxation at FinSolve Accounting and Taxation – situated in Durbanville Cape Town.
He completed his B- Compt degree in Financial Accounting while still busy with his articles at Diemont, Zimmerman & Bolink Auditors in Polokwane.

After his articles, he entered the private sector to gain valuable experience as a Group Finance Manager and Group Internal Tax Practitioner.

He is currently busy with his postgraduate diploma in taxation through Unisa.
Daniel is a registered tax practitioner and a proud member of the South African Institute of Taxation.