Abstract
M.Comm.
Limited tax implications of capital gains tax in South Africa is addressed in this study with reference to the Eighth Schedule of the Income Tax Act (hereafter the Act). Various publications by the South African Revenue Service (hereafter SARS) and leading tax specialist's publications available on the website www.cgtsa.co.za were also consulted.
Employee Share Ownership Schemes (hereafter ESOP's) are defined and the most commonly used schemes in South Africa are explained with reference to various internal publications by PricewaterhouseCoopers. The Income Tax implications as well as the capital gains tax implications on selected schemes will be discussed.
The implications of capital gains tax on all transactions in South Africa falls outside the scope of this study, as this study focuses on the basic explanation of the core capital gains tax provisions in South Africa, with specific application to certain employee share ownership programmes (hereafter ESOP's) used in South Africa.