Chinese homeowners are scrambling to shift property
before 20% capital gains tax
hits, says the DailyMail
South African businesses are also worried, as not paying capital gains tax when you dispose of company assets is one of the easiest ways to unintentionally commit tax avoidance.
That's because it's up to you to declare all your capital gains and losses and pay SARS on time.
Most businesses think capital gains tax only applies to the sale or disposal of their property or business.
But it's not just businesses and properties that CGT applies to.
The sale of assets like cars and machinery are also seen as capital gains, as is the sale, donation, scrapping, or distributing of your company's assets, like donating an old printer to the local old age home. And if you make a profit when disposing of the asset – like receiving R10 in lieu of the printer – capital gains tax applies too.
So give your business premises a good hard look and write down all the assets that capital gains tax applies to.
This way, you'll be more likely to remember to declare all your capital gains to SARS when you sell or dispose of them.
If you don't, you'll be found guilty of tax
evasion and slap you with a 200% penalty, says FSP Business
For a detailed explanation on what these five basic CGT
concepts include and how they're used to calculate your company's CGT
liability, get your hands on our FSP Business Practical Tax Loose Leaf here
In the Practical Tax Loose Leaf
we've got a dedicated chapter on Capital Gains Tax,
in this chapter you'll discover...
5 key concepts to understand, before you can get
started calculating your CGT
How to calculate your CGT liability, in 5 easy steps
How will CGT affect small businesses?
How does CGT affect provisional taxpayers?
What's included in CGT if you work from home?
Follow these 8 disposal timing rules
Transfer your residence from a trust or company without
paying capital gains tax or Transfer Duty – here's how
Get your copy of the Practical Tax Loose Leaf today