F.A.Q - Estate Duty and Tax Implications in South Africa

Deceased Estate Duty and Tax Implications in South Africa

What Is Estate Duty in South Africa?

Estate Duty is a tax on the net value of a deceased estate, charged at 20% on the first R30 million and 25% thereafter, after deductions and exemptions. 

Are There Exemptions or Deductions for Estate Duty?

Yes, exemptions include a R3.5 million abatement per estate, bequests to a surviving spouse, and certain charitable donations. Deductions cover liabilities, funeral costs, and administration expenses.

Who Is Responsible for Paying Estate Duty?

The Executor or Master’s Representative pays estate duty from the estate’s assets before distributing to beneficiaries. 

Do All Deceased Estates Pay Estate Duty?

No, estates with a net value below the R3.5 million abatement (after deductions) are exempt from estate duty. 

Are Beneficiaries Taxed on Their Inheritance?

 Inheritances are generally exempt from personal income tax for beneficiaries. However, income generated from inherited assets (e.g., rental income) may be taxable, and CGT may apply if assets are sold later.