CGT (Capital Gains Tax) isn’t a separate tax — it’s the way SARS taxes profits from disposing of capital assets like shares, property, or a business. The gain (proceeds minus base cost minus exclusions) is multiplied by the inclusion rate (40% for individuals, 80% for companies and trusts) and added to your taxable income, where it’s taxed at your marginal rate.
Each individual gets an annual exclusion of R50,000 (or R300,000 in the year of death). Selling a primary residence carries a R3,000,000 exclusion on the gain. Transfers between spouses, donations to qualifying PBOs, and certain retirement-fund payouts are excluded entirely.
Base cost is what you paid for the asset plus qualifying improvements and disposal costs. For assets owned before 1 October 2001 (CGT introduction), valuations or time-apportionment methods apply.