Share Forum - Discuss JSE shares and join the Investor Challenge

To make things more clear to me I did this math. (yossa must be looking at my account)

 R67 690.60

Yes, it was off what I could recall of your circumstances.  Pretty close eh?

Your fear that SARS might not look at a single factor (holding time) to determine if your transactions were capital in nature is well founded.  But clearly there is some possibility to minimize your tax burden by judicious selling.

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-CGT-G01%20-%20Comprehensive%20Guide%20to%20Capital%20Gains%20Tax%20-%20External%20Guide.pdf

JDG 117 cents - LDT: 2013-10-11

The first R30 000 of capital gains is tax free.  So assuming you had made 200% on some share you could cash in R45 000 worth annually and pay zero tax. 

Assuming your only income was sale of shares:

You could keep cashing out tax free in until you hit the tax threshold.  Assuming a threshold of 67 000 you could sell R350 000 worth of shares for a capital gains of 233 333.  Deduct your 30 000 exclusion and multiply the rest by 0.33 and your taxable income is 67 777.  Pretty much tax free?

Source:

http://www.sars.gov.za/AllDocs/OpsDocs/Tables/IT-GEN-01-TBL02%20-%20Income%20Tax%20Rates%20for%20Individuals%20and%20Trusts%20for%202013%20and%202014%20-%20External%20Table.pdf

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-CGT-G02%20-%20The%20ABC%20of%20Capital%20Gains%20Tax%20for%20Individuals%20-%20External%20Guide.pdf

PS:  I'm not a tax expert!  I could be wrong here!  But check the links I posted...
PPS: Dividends are taxed (generally) at 15%.

OLG 5 cents - LDT: 2013-09-27

FFB 15.22 cents - LDT: 2013-08-30