Three taxes punish South Africans for saving and investing

[Kirsten Minnaar]

Three taxes punish South Africans for saving and investing

South African investors who do the “right things" by saving and investing their money are forced to watch as SARS eat into their returns with three different taxes.

 

[Johnatan56]

"punish" is dumb, if you use it as savings/investment, it's capital gains tax and is way lower than income tax, your article states it.

And dividends tax is lower than income tax for most, avoiding it, so it's more of a "reward" than a punishment.

Of course fixing the headline sorts out the rage click bait.

 

[DreamKing]

"punish" is dumb, if you use it as savings/investment, it's capital gains tax and is way lower than income tax, your article states it.

And dividends tax is lower than income tax for most, avoiding it, so it's more of a "reward" than a punishment.

Of course fixing the headline sorts out the rage click bait.

stockholm syndrome?

 

[DreamKing]

"tax" is always a method to punish the successor.

 

[Snotface]

Wait until you start considering Estate Duty/Inheritance Tax for your dependents.

 

[Smiggles]

Getting taxed to death is the only certainty in life.

 

[Snotface]

Getting taxed to death is the only certainty in life.

Until you realise they tax you after death too.

 

[Smiggles]

Until you realise they tax you after death too.

Luckily I'm dead then

 

[W@P]

Wait until you start considering Estate Duty/Inheritance Tax for your dependents.

Getting taxed to death is the only certainty in life.

Until you realise they tax you after death too.

I just last week received a draft L&D account of my late father's estate. 2 years after his death.

Estate duty is mofo.

 

[Bad Ballie]

Doesn't matter how much or little you have; the government wants it and will create the laws that allows it to take it from you.

 

[Johnatan56]

Until you realise they tax you after death too.

Inheritance tax arguments are always weird to me, you didn't work for it, it hasn't been taxed before it got to you, it's a first time tax like income.

If you argue against inheritance tax, then technically anyone paying anyone doesn't work as it's gone through an income tax before.

 

[vigras rojara]

Inheritance tax arguments are always weird to me, you didn't work for it, it hasn't been taxed before it got to you, it's a first time tax like income.

If you argue against inheritance tax, then technically anyone paying anyone doesn't work as it's gone through an income tax before.

Yeah, I think it's just the sums involved that makes people notice. When someone dies there's an immediate deemed CGT event, although you get an automatic R440 000 exemption on that - and 40% of the balance is taxed at the deceased's maximum marginal rate of income tax.

Add that to estate duty (first R3,500,000 exempt) and add other non tax items like executor's fees (3,5% + VAT, plus 6% of interest earned during the winding up) and it can seem quite overwhelming, even if it shouldn't.

 

[Mirai]

stockholm syndrome?

Vienna syndrome. It's always those guys who leave who tell those who remain how good it is

 

[biena]

it hasn't been taxed before it got to you, it's a first time tax like income.

Where do you get that idea? Whoever gave you an inheritance had to earn it, earnings are taxed.

 

[ghaye]

Inheritance tax arguments are always weird to me, you didn't work for it, it hasn't been taxed before it got to you, it's a first time tax like income.

If you argue against inheritance tax, then technically anyone paying anyone doesn't work as it's gone through an income tax before.

It's been taxed to hell before it gets to you. Then it gets taxed again.

 

[Johnatan56]

It's been taxed to hell before it gets to you. Then it gets taxed again.

So has everything, and again, it hasn't been taxed yet when you inherit.

It should be very high before it triggers though, like R20m+ in south Africa.

 

[Johnatan56]

Where do you get that idea? Whoever gave you an inheritance had to earn it, earnings are taxed.

You didn't pay that tax, whoever earned it did.

 

[Pegging]

So has everything, and again, it hasn't been taxed yet when you inherit.

It should be very high before it triggers though, like R20m+ in south Africa.

And if you want to leave a business like a farm to your kids they may end up having to sell it after all the taxes.

 

[Cray]

"punish" is dumb, if you use it as savings/investment, it's capital gains tax and is way lower than income tax, your article states it.

Standard interest income on savings (outside of the tax free allowance) is taxed at your personal marginal tax rate, so no, it's not lower than income tax.

 

[ghaye]

So has everything, and again, it hasn't been taxed yet when you inherit.

It should be very high before it triggers though, like R20m+ in south Africa.

Do you understand the concept of inheritance?