{"id":199871,"date":"2017-03-16T08:18:36","date_gmt":"2017-03-16T06:18:36","guid":{"rendered":"https:\/\/wereldwyd.co.za\/capital-gain-distribution-south-african-trust-taxable-hands-non-resident\/"},"modified":"2017-03-16T08:18:36","modified_gmt":"2017-03-16T06:18:36","slug":"capital-gain-distribution-south-african-trust-taxable-hands-non-resident","status":"publish","type":"post","link":"https:\/\/wereldwyd.co.za\/en\/capital-gain-distribution-south-african-trust-taxable-hands-non-resident\/","title":{"rendered":"Is a capital gain distribution from a South African trust taxable in the hands of a non-resident?"},"content":{"rendered":"

Question:<\/strong> My client is a non-resident for tax purposes and received a distribution \u2013 capital gains \u2013 from a will trust. We want to know whether to include it in his local tax return, seeing as he already incurred other capital gains tax this year.<\/p>\n

Answer:<\/strong> The capital gain, in this instance (i.e. a will or mortis causa trust), is dealt with in terms of paragraph\u00a080(2) of the Eighth Schedule to the Income Tax Act (and when vesting takes place). It only refers to a resident and will therefore not attribute the capital gain to the beneficiary who is not a resident of the RSA. SARS discusses this in detail in its CGT guide \u2013 page 541 and onwards. Its first statement is as follows:<\/p>\n

The default position is that a trust must account for any capital gain or loss that arises when it disposes of an asset. As discussed in 14.11.1, paragraph\u00a080 provides an exception to the default position by attributing a capital gain from the trust in which it arises to a resident beneficiary. No mention is made in paragraph\u00a080(1) and (2) of a non-resident beneficiary, and so no attribution to such a person is possible.<\/em><\/p>\n

Contact the Tax Consultant Fanus Jonck<\/strong> with your tax queries (tax@jonck.net<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

Question: My client is a non-resident for tax purposes and received a distribution \u2013 capital gains \u2013 from a will…<\/p>\n","protected":false},"author":214,"featured_media":199872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[801,800],"tags":[],"class_list":["post-199871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-and-migration-news","category-news"],"taxonomy_info":{"category":[{"value":801,"label":"FINANCIAL AND MIGRATION NEWS"},{"value":800,"label":"News"}]},"featured_image_src_large":["https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/capital-gain-distribution-south-african-trust-taxable-hands-non-resident.jpg",700,490,false],"author_info":{"display_name":"Sue-Ann de Wet","author_link":"https:\/\/wereldwyd.co.za\/en\/author\/sue-ann-de-wet\/"},"comment_info":0,"category_info":[{"term_id":801,"name":"FINANCIAL AND MIGRATION NEWS","slug":"financial-and-migration-news","term_group":0,"term_taxonomy_id":801,"taxonomy":"category","description":"","parent":800,"count":200,"filter":"raw","term_order":"0","cat_ID":801,"category_count":200,"category_description":"","cat_name":"FINANCIAL AND MIGRATION NEWS","category_nicename":"financial-and-migration-news","category_parent":800},{"term_id":800,"name":"News","slug":"news","term_group":0,"term_taxonomy_id":800,"taxonomy":"category","description":"","parent":0,"count":494,"filter":"raw","term_order":"0","cat_ID":800,"category_count":494,"category_description":"","cat_name":"News","category_nicename":"news","category_parent":0}],"tag_info":false,"jetpack_featured_media_url":"https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/capital-gain-distribution-south-african-trust-taxable-hands-non-resident.jpg","fimg_url":"https:\/\/wereldwyd.co.za\/wp-content\/uploads\/2024\/10\/capital-gain-distribution-south-african-trust-taxable-hands-non-resident.jpg","_links":{"self":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts\/199871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/users\/214"}],"replies":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/comments?post=199871"}],"version-history":[{"count":0,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/posts\/199871\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/media\/199872"}],"wp:attachment":[{"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/media?parent=199871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/categories?post=199871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wereldwyd.co.za\/en\/wp-json\/wp\/v2\/tags?post=199871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}