<P> First introduced on 1 October 2001, capital gains tax is effectively charged by adding a percentage of the increase in value of an asset, that was disposed of for more than its base cost, to the taxpayer's taxable income (see normal tax). For individuals, deceased estates and special trusts 40% of the net gain exceeding R 40 000 exclusion for individuals is added to their taxable income . For companies, close corporations and trusts 80% is added . Net capital losses in any given year cannot be used as a set - off against ordinary income; but can be carried forward to the following years to be used as a set - off against future capital gains . </P> <P> Indirect taxes are taxes which are levied on transactions rather than on persons (whether individuals or corporate). </P> <P> Value Added Tax (VAT) is a broad tax made by vendors on the supply of goods and services that is charged upon purchase . VAT must be paid irrespective of whether or not it is a capital good or trading stock so long as the vendor uses the goods in his / her enterprise . It's compulsory for a business to register VAT remission when the value of taxable supplies in a 12 - month period exceeds or is expected to exceed R1 million . VAT in South Africa currently stands at 15% as of 1 April 2018 . Value Added Tax (VAT) was first introduced in South Africa on 29 September 1991 at a rate of 10% . In 1993 VAT was raised to 14% and to 15% at the national budget speech in February 2018 . If given price on an item charged by a vendor does not mention VAT then that price is deemed to include VAT . </P> <P> In 2009 / 10 fiscal year about 72% of the 685,523 registered VAT vendors were active . Over 55% of VAT vendors had a turnover of less than R1 million . People who are not South African passport holders and are not resident in South Africa are eligible to claim back VAT on movable goods purchased in the country provided they present a tax invoice (such as a receipt) for those goods . </P>

When do you start paying tax in south africa