Capital Gains Tax (CGT) is payable on the disposal of assets on or after the valuation date, i.e. 1 October 2001. In the case of South African residents, the tax will apply to disposals of all assets (including overseas assets).

In the case of non-residents, the following assets will be subject to CGT:

• Immovable property, or any right or interest in a property (this includes a direct or indirect interest of at least 20% held alone or together with any connected person in the equity share capital of a company, where at least 80% of the value of the net assets of the company is, at the time of the disposal, attributable to immovable property in SA); and (2) any asset of a permanent establishment through which a trade is carried on in SA;

A capital gain or loss is determined by calculating the difference between the proceeds i.e. the amount accruing to the seller, and the base cost of the disposed asset. Base cost relates to the costs directly incurred in acquiring or improving the asset.

Calculating of CGT

A capital gain or loss is calculated separately with respect of each asset disposed. Once determined, gains or losses are combined for that year of assessment. An annual exclusion of R40 000 then applies, in respect of natural persons only, to the sum of all gains and losses (R300 000 in the year of death of the person). The resulting capital gain or loss (if not specifically excluded, disregarded or deferred) is aggregated with all other gains or losses in the current tax year, and if it is an assessed capital loss, it is carried forward to the following year, or a net capital gain, it is multiplied by the inclusion rate. This taxable capital gain is included in taxable income and taxed at the normal income tax rates applicable.

Payment at SARS Cash Office

Payment of your VAT can be made at the cash office of any SARS branch by means of EFT during office hours, Monday to Friday between 08h00 and 15h30. You must ensure that your payment is made on or before the 25th or last preceding business day. Drop boxes are available at each SARS branch office where you can submit your cheque or postal order payment together with your VAT return.

Payments at Banks

You may choose to pay your VAT at a bank in which case you must ensure that your payment at the bank is made on or before the due date reflected on the VAT return. In order for your payment to be successfully processed, the following information is required on the deposit slip:

A 19 digit Bank Payment Reference which is made up as follows:

• Your 10 digit VAT Registration Number and;
• The Tax Type indicator – V for VAT and;
• An 8 digit Tax Period number to follow the format: 00mmccyy, for example 0062005 represents payment for the tax period ending June 2005.
• The Branch Code – 353145
• The SARS VAT Bank Account number – 51421187737
• An example of the above: Bank Payment Ref: 4880124452V00062005
• Branch Code: 253145
• Bank Account: 51421187737
• Note: The above information is also pre-printed on your VAT return.

Note: The above information is also pre-printed on your VAT return.

Debit Orders

SARS has referred to the requirements for the payment of VAT by means of the transfer of funds by electronic means on various occasions, setting out the requirements of SARS. Payment of VAT to SARS by means of electronic transfer, in which case the vendor’s bank account would be debited by SARS. The VAT return must still be submitted on or before the 25th or last preceding business day. A Form VAT201(a), debit order authorisation, is required to be completed and must be stamped by your bank, certifying the correctness of your bank account particulars and must be furnished to SARS, in order to authorise SARS to electronically transfer the VAT amount from your bank account.

E-Filing

In order to qualify for E-Filing, both VAT returns and payments must be filed electronically to SARS.
You may submit your VAT return and payment electronically. The return and payment using the e-filing system must be received by SARS on or before the last business day of the month.

Internet Banking

Where payment is made by using Internet banking facilities or any other electronic transfer medium, the payment must be received in SARS’s bank account on or before the 25th or last preceding business day and, such payment must accurately reflect your VAT reference number and the tax period for which the payment is being made. The bank payment details must be furnished. Failure to provide these details will result in the payment not being credited to your account. Arrangements with your bank to effect “same day” or “online” transfers are your responsibility.