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Tax on the disposal of immovable property by a non-resident: when is it payable?

Monday, 16 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: When should capital gains tax be paid on the transaction of a non-resident who  sold his town house? He didn't complete tax returns in previous years because the rental income is under the tax threshold . Must he wait till 2015 tax season and then complete a tax return?

A: The obligation for a natural person to register for income tax per section 67 of the Income Tax Act is when such person becomes liable for normal tax or is required to submit a tax return (GG 37767). The taxpayer has become liable for both in our view in respect of the rental income and should become compliant in respect of such periods. In respect of the townhouse disposal, this will be disclosed in the annual tax return for that year in which the disposal occurred and any tax liability will become payable after assessment.

Please click here to view the government notice regarding persons required to submit an income tax return.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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