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Investment information to be added on the SARS form and capital gains on what I draw every month?

Posted 29 October 2013 under Tax Questions

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Hi, I have and investment, local and foreign dividends, that I draw an amount off every month of R6 000, there is a capital gains on this. I do not own fixed assets of any sorts and do not have a job, so the R6 000 is what I live off. How does this work with the capital gains on the SARS form, surely there should be and exemption for this? Also, the SARS form only asks for foreign withheld tax on dividends and not the local withheld tax. In the exemption area under non taxable what net amount do I put down? Local dividends less withheld local tax? I am 36 years of age.

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TaxTimTaxTim says:
29 October 2013 at 18:24

Yes you would put the net amount of local dividends on the return as a withholding tax has already been deducted.

Regarding the capital gains, you would receive, at year end, an IT3c from your investment house which would have a summary of your capital gains and losses for the year, you would use this to complete the Capital Gains portion of the ITR12. The first R30 000 of your capital gains for the year are free from tax and thereafter 33.3% of the gain is included in your taxable income.

Given you earn about R72 000 from any gains made, you will not pay any tax on the amount as it is under the threshold once you apply the above formulae.

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