No inheritance tax in South Africa, but… – Inheritance tax
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In South Africa, we have the privilege of not having to pay inheritance tax on benefits received from a deceased estate. In many countries like the UK, citizens have to pay inheritance tax of around 40% on amounts over £375,000. Only the new king, it seems, will escape such an obligation because a monarch is exempt by law from tax.
But, before we can get excited, South Africa has an inheritance tax whereby the estate pays taxes. It is levied on the worldwide property of an individual who ordinarily resides in South Africa. 20% on the first R30 million of the assessed value of an estate and 25% on the amount exceeding R30 million.
However, all is not gloomy. The Estate Tax Act has been kind enough to allow certain deductions and rebates to provide tax benefits to the public.
It is important to have an experienced trustee accompany you to ensure that your affairs will be in order upon your death and that the expected estate rights will be structured favourably.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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