CGT inclusion rate
Also known as: inclusion rate, capital gains inclusion rate
The portion of a net capital gain that is included in taxable income and taxed at your marginal rate — 40% for individuals.
Definition
South Africa has no flat CGT rate. Instead, after the annual exclusion, a fixed inclusion rate determines how much of the net capital gain is added to taxable income, where it is taxed at your marginal rate. For individuals the inclusion rate is 40%; for companies and most trusts it is higher. The effective maximum CGT rate for an individual is the inclusion rate times the top marginal rate.
Example
You have a R100,000 net capital gain after the exclusion. At a 40% inclusion rate, R40,000 is added to taxable income and taxed at your marginal rate.
Jurisdiction notes
- South Africa: Individuals include 40% of the net capital gain in taxable income; companies and most trusts use a higher inclusion rate.