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What is the tax rate for trusts in South Africa?

Posted 11 June 2013

Trusts pay 40% income tax. Is it 40% on all income, or 40% on profit?

TaxTim TaxTim says:
11 June 2013 at 9:40

It will be on the net income of the Trust after allowable deductions.

Mary-Jo says:
11 June 2013 at 10:57

Thanks for the quick reply.
Where can I find out what the allowable deductions for Trusts are?

TaxTim TaxTim says:
11 June 2013 at 12:47

Trusts can deduct amounts related to income they earn in the same way as a business. So expenses related to income earning activities. However the trust must be paying tax or earning income itself in order to claim deductions and not distribute amounts to the beneficiaries.

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