We have recently assisted a client when selling their property and a similar scenario when they sold their business / property. So, how do you ensure you are saving tax when selling your business and or property?
In summary, their tax liabilities were as follows:
Capital Gains Tax = 80% inclusion rate and then 28% on that amount – effective 22.4%
Dividends Tax = 20% of Dividend (effective 15.52%)
Donations Tax = 20% of Donation (effective 10.35)%
TOTAL 48.27% (!!!)
So what does that mean for you?
How can you ensure you are saving tax when selling your business and or property?
So in theory if you were selling for R1 000 000 you could only walk away with as little as R517 333 (!!!)
However, after some clever “fancy footwork” we managed to assist our client to get out and walk away with R856 900.
Talk to the right accountant as this is possible.
(This in no way is to be quoted and is an illustration only, but plan plan plan and it IS possible).
T’s and C’s
Terms and conditions apply and section 103 of the Income Tax are not to be abused or transgressed.