Donation and Capital Gain Tax

Donations tax

The threshold below which no donations tax is payable is R100 000. Thereafter a 20% flat rate of value on property is payable.

In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts not exceeding R 10 000 p.a. in total.

Dispositions between spouses and donations to certain public benefit organisations are exempt from donations tax.

Capital gains tax

The annual capital gains tax exemption for individuals has been increased to R30 000. The monetary threshold below which no capital gains tax is imposed at death is R300 000.

Estate Duty

What is Estate Duty?

Estate Duty is charged, levied and collected  from the estate of every person who dies on or after 1 April 1955 in terms of the Estate Duty Act, 1955, Act 45 of 1955 (the Act). Estate Duty is charged at the rate of 20% upon the taxable amount of the estate calculated in terms of the Estate Duty Act. Under current legislation it is levied on the “dutiable amount of the estate” exceeding R3 500 000.

Who is responsible for payment of Estate Duty?

In general, the estate is liable for Estate Duty and it shall be paid by the executor. Where a policy was paid to a beneficiary directly, the beneficiary is liable for the proportionate share of the Estate Duty payable.

Who is responsible for the collecting of Estate Duty?

The Commissioner for SARS is responsible for administering the Estate Duty Act.  SARS has delegated its powers and authority to the Master of the High court.  There are 14 Masters’ offices in SA (Pretoria, Bloemfontein, Kimberley, Cape Town, Port Elizabeth, Grahamstown, Durban, Pietermaritzburg, Polokwane, Bisho, Johannesburg, Mmtata, Thohoyandou, and Mafikeng).

SARS remains responsible for collecting the Estate Duty.

How does one declare Estate Duty?

The Executor will calculate the Estate Duty when preparing the liquidation and distribution account. He will then complete the Estate Duty return (REV 267)and send to the Master of the High Court’s office where the estate is registered.  A copy of the liquidation and distribution account must be sent with the REV 267. The Master will then assess the Estate Duty payable.

When should Estate duties be paid?

The duty assessed must be paid within 1 year of date of death or on the date prescribed in the notice of assessment.  Currently interest will be levied at the rate of 6% p.a on late payments.

Transfer Duty

What is it?

Transfer Duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way. It’s based on the value by which any property has increased when you come to dispose of that property. For the purpose of Transfer Duty, property means land and fixtures and includes real rights in land, rights to minerals, a share or interest in a “residential property company” or a share in a share-block company. All Conveyancers are requested to register with SARS.

These are the Transfer Duty rates applied to properties acquired on or after 23 February 2011, and apply to all persons (including Companies, Close Corporations and Trusts):



 R0                        → R600 000 ​            0%

 R600 000           → R1 000 000​        3% on the value above R600 000, but not exceeding R1 000 000

 R1 000 000       → R1 500 000​ ​            R12 000 plus 5% on the value above R1 000 000, below R1 500 000

 R1 500 000+        ​                                   R37 000 plus 8% on the value above R1 500 000

Estate planning 

Estate Planning involves making plans for the transfer of your estate after death. Your estate is all the property that you own – this can include cash, clothes, jewellery, cars, houses, land, retirement, investment and savings accounts, etc. 
Estate Planning usually has several objectives and goals which include:

1. Making sure most of the estate is transferred to your beneficiaries

2. Paying the least amount of taxes on your estate

3. Assigning guardians for minor children (if any)

4. Setting up of trusts for your children and family

Regardless of your net worth, it is important to have a basic estate plan in place. An estate plan makes sure your family and financial goals are met after you die, and must be reviewed on an on-going basis in the event of:

1. Accruing and / or creation of assets

2. The use of these assets during your lifetime

3. The final division of these assets during your lifetime or at your death

#insurance #TshephoChokoe #financialadvisor 

Benefits of Insurance 

i. payment of losses
If you lose your job or income, it would mean financial hardship for you. But the negative impact would extend beyond you and may end up affecting your family. The proceeds of an insurance policy benefit everyone by restoring the insured person to the same financial condition as before the loss and preventing the loss from rippling out and affecting others negatively

II. Economic growth

The insurance industry plays an important role in the nation’s economy. It is second only to the commercial banking industry as a source of investment funds because insurance companies invest the billions of the premium they receive annually in a wide range of investments

Insurance companies use premiums collected from policyholders to

• pay for claims;

• pay for cost of doing business; and

• build cash reserves for future loss payments.

Cash reserves are invested in cash, bonds, equities and shares that are used to build roads, schools and utilities. Reserves are also invested in commercial developments and the stock market. These investments promote economic growth in communities and support the insurance company’s requirement of maintaining sufficient capital reserves to pay future losses and earn a profit

III. Credit support

Banks and credit institutions rely on insurance to make sure they can recover loans if disaster occurs. Insurance allows borrowers to guarantee creditors that their investment is protected against disasters. Insurance protects the value of property from unforeseen disasters; and a client’s ability to pay back loans if illness or premature death occurs.

IV. loss prevention

Insurance also benefits society by encouraging activities and devices that reduce the amount of losses and their economic impact. Insurance agents, financial advisors and risk managers often work with individual and commercial clients to implement loss prevention measures such as healthy lifestyle. The life insurance industry also educates individuals and businesses on the need to develop financial plans in the event of a premature death of a breadwinner or key executive. Helping clients to eliminate or reduce the amount of loss and human suffering has long been a part of the insurance industry.

V. Cost to Society

people commit arson simply to access policy proceeds. This is an insurance cost because the loss would not have occurred unless the arsonist believed he or she could collect on the policy. In other words, without insurance, arson for profit would not exist.

In a less sinister but equally damaging way, some people aren’t as careful to prevent losses when they have insurance. You may have heard someone say, “So what if something happens to my property—that’s why I have insurance.” They don’t cause the loss intentionally, but are indifferent as to whether it occurs. This indifference to loss leads to damage and injury that could have been prevented, and it also is considered a cost of insurance.

What is Insurance?

Insurance is a financial device for transferring or shifting risk from an individual or entity to a large group with the same risk. This is accomplished through a contract, the insurance policy, with an insurance company. Under this arrangement, the individual, along with other insureds, pays a sum to the insurance company. In turn, the insurance company agrees to pay an amount of money (reimbursement) to the individual, or on behalf of the individual, if the events described in the policy occur.

The products and services the insurance industry provides offer many benefits to society. Today’s insurance provides protection by reimbursing people when their property is damaged or they suffer some other loss. Insurance helps individuals and business owners resume their normal standard of living and operations, which also benefits society as a whole.

Dreams are built

It’s about being eager to learn more about being happy and minimize the risk of living lives we hate than making money. I took time to learn about individuals’ value system and I noticed we are not happy because we turn to inject our projections unto others and make them to be as we think of them.
They say: many years ago customers would say to you I trust you, give me a reason not to trust you anymore. But now they say: I don’t trust you so give me a reason to trust you. Things change daily and it’s not even funny.


I incorporate  dreams into financial portfolios. I have been in the industry of serving people but I have never served as many as I expected. Am I not seeing enough clients or am I that bad with setting appointments or people just don’t understand the importance of making their money to work for them and not them working for money?

Build your dreams now or spent your lives wishing you had one. All it take is time and not being afraid to risk loosing money. I tell people that consult with me not to take interests rate as a factor when investing but to focus on their goal and you let me and the fund managers take care of that. I am happy we all agree that we can’t build our dreams on our own.

I never wanted to work with people when I was growing up and that is why I studied and got degree in engineering  field. I now earn a living through meeting and sharing quality time with people. I don’t regret it all although I wish I could have learnt more about qualities people have than what is best for them. I learnt that how people make or waste money (with money it’s either you make it or you waste it) it is connected to your believe system.

Insurance Engineering – IE

These green people are so very easy to spot on TV and better yet it may be easy for us to spot them in magazine’s. So as they can spot us easily without risk protection. But trust me in real life you will never recognize them usually all you hear are their voices.

These green people are like engineers they transform a raw material into a finished product. Like are like lawyers they reduce your life sentences and buy you freedom. In the equation of life they are calculated as well. Let’s talk about them… tshepho.chokoe@sanlamkeysolutions