NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY

From 1 September 2007, a purchaser of immovable property (which has been disposed of in excess of R2 million) is obliged to withhold the amounts set out below from the purchase price payable, if the seller of the property is not resident in South Africa:

A non-resident seller of immovable property may be entitled to request that tax be withheld at a lower or even zero rate. The reasons why a sale would attract a lower rate of CGT will depend on the facts of the particular case, for example, the person may be fully exempt from CGT or in the case of an individual, have a low level of taxable income or have disposed of the property at a loss. To request a tax directive you must complete form NR03 and submit it together with the offer to purchase, tax calculation and supporting documentation to nres@sars.gov.za or use one of the other submission methods described on the form.