Tax Guide for Share Owners (Issue 8)

This guide does not constitute an “official publication” as defined in section 1 of the Tax Administration Act 28 of 2011 (“TA Act”) and does not create a practice generally prevailing under section 5 of that Act. It is also not a binding general ruling under section 89 of Chapter 7 of the TA Act.

The guide examines:

• The tax consequences of holding shares as trading stock compared to holding them as capital assets;
• How to distinguish between profits of a capital and revenue nature using common law principles and statutory rules;
• The determination of a taxpayer’s liability for capital gains tax;
• How dividends are taxed; and
• Various corporate actions that can impact on the determination of a person’s liability for tax.

The guide covers the following topics relating to shareholding in detail:

• Income tax v capital gains tax
• Capital v revenue
• Income tax
• Capital gains tax
• Corporate restructuring events
• Death

Find a copy of the guide here.

18/11/2022