CHAPTER 23:01

CAPITAL GAINS TAX ACT

Acts 54/1981, 30/1982, 32/1983, 7/1984, 24/1984, 19/1985, 4/1988, 16/1988, 22/1989, 10/1990, 19/1990, 21/1991, 17/1992, 12/1993, 19/1994, 13/1996, 29/1998, 21/1999, 22/1999, 18/2000, 22/2001, 27/2001, 15/2002, 10/2003, 17/2004, 18/2004, 29/2004, 2/2005, 8/2005, 6/2006, 12/2006 16/2007, 3/2009;5/2009. SIs: 222E/1999.

ARRANGEMENT OF SECTIONS PART I

PRELIMINARY Section

1. Short title.

PART II

ADMINISTRATION

3. Delegation of functions by Commissioner.
4. [Repealed]
5. [Repealed]

PART III

CAPITALGAINS TAX

6. Charging of capital gains tax.
7. Calculation of capital gains tax.
8. Interpretation of terms relating to capital gains tax.
9. When capital amount deemed to have accrued.
10. Exemptions from capital gains tax.
11. Deductions allowed in determination of capital gain.
12. Circumstances in which no deductions may be made.
13. Damage to or destruction of specified asset.
14. Determination of fair market price of specified assets.
15. Transfers of specified assets between companies under the same control.
16. Transfers of specified assets between spouses.
17. Transfer of business property by individual to company under his control.
18. Provisions for sales of immovable property under suspensive conditions.
19. Provisions relating to credit sales where ownership passes.
20. Provisions for the reductions in costs of specified assets.
21. Provision for sales of principal private residences.
22. Substitution of business property.

PART IIIA

CAPITAL GAINS WITHHOLDINGTAX

22A. Interpretation in Part IIIA.

22B. Capital gains withholding tax.

22C. Depositaries to withhold tax.

22D. Agents to withhold tax not withheld by depositaries.

22E. Payee to pay tax not withheld by depositary or agent.

22F. Exemptions.

22FA.      Registration of depositaries. 22G. Depositaries to furnish returns.

22H. Penalty for non-payment of tax.

22I. Refund of overpayments.

22J. Credit where tax has been withheld.

22K. Application of Part IIIA to sales concluded before 1.1.1999.

22L. Suspension of provisions of Part II A to marketable securities.

PART IV

RETURNS AND ASSESSMENTS

23. Application of provisions of Taxes Act relating to returns and assessments.

PART V

REPRESENTATIVE TAXPAYERS 24. Application of provisions of Taxes Act relating to representative taxpayer.

PART VI

OBJECTIONS ANDAPPEALS 25. Objections and appeals.

PART VII

PAYMENT AND RECOVERY OF TAX 26. Day and place for payment of tax.

PART VIII

GENERAL

27. Application of provisions of Taxes Act relating to offences, evidence, forms and regulations.
28. Application of provisions of Taxes Act relating to relief from double taxation.
29. Application of provisions of Taxes Act relating to tax avoidance.
30. Transitional provision re capital gains and losses of married women.

30A. Capital gains tax not withheld in terms of Part IIIA to be paid before transfer of specified asset.

31. Returns by Registrar of Deeds , financial institutions and other persons.

AN ACT to provide for the raising of a tax on capital gains, and to make provision for matters ancillary or incidental thereto.

[Date of commencement: 1st August, 1981.]

PART I

PRELIMINARY

1    Short title

This Act may be cited as the Capital Gains Tax Act [Chapter 23:01].

         2    Interpretation

(1) In this Act—

“approved employee housing trust fund” means an arrangement embodied in a notarised trust deed which satisfies the Commissioner-General that its dominant purpose or effect is to enable a company or group of companies to finance and construct housing for its employees on terms that will eventually allow the employees to acquire ownership of their homes from the trust;

[Definition inserted by Act 6 of 2006]

“assessed capital loss” means the amount by which the sum of the deductions to be made under subsections (2) and (3) of section eleven from the capital amount (as defined in Part III) of any taxpayer exceeds such capital amount:

Provided that where the total amount of the assessed capital loss of a person in respect of sales in any year of assessment is one hundred United States dollars or less the assessed capital loss arising from such sales shall be reduced by such amount;

[Definition inserted by Act 5 of 2009]

“deed of sale” means an agreement in respect of a specified asset the effect of which is that ownership of the specified asset shall pass to a person upon or after payment by him of the whole or a certain portion of the amount payable under the agreement;