Tuesday, 16 August 2016

Tax Implications

Tax Implications when dealing in Shares (Abbreviated):

•    .25% tax are payable by the buyer of the shares value of the transaction when concluding the transaction;
•    An Individual who derives income from share trading as a primary income will be considered by SARS to be a share dealer and áll the income derived from such (less expenses or losses), are taxable;
•    An Individual, who buys and sells shares during the course of a financial year and derives a nett profit (Income, less Expenses incurred), from such sales, will be exempt from tax for the first R40k, received from this source. 40% of any other income received beyond that (i.e. when buying and selling shares), should be reflected in and added to the taxable income of the said individual for the financial year; and
•    If someone retains the shares indefinitely the dividends received will be subject to 15% withholding tax by the Company paying such dividends