No capital gains taxes or wealth taxes. Tax treaties with a number of countries and new treaties are being negotiated Tax system contains a number of anti-avoidance provisions. Tax system does not recognize taxation by group or consolidation.
Tax system taxes income sourced or deemed to be sourced in South Africa.
Certain foreign investment income accruing to a South African resident is taxable in South Africa. Tax system taxes profits of a revenue nature but not those of a capital nature. Income less deductions equals Taxable income. Only income which is from a South African source or which is deemed to be from a South African source is taxable. However, foreign investment income accruing to a South African resident or company, including royalties, interest, annuities, rentals, but not dividends, is now taxable in South Africa regardless of what part of the world it arises.