What Does Proceeds Mean? General and CGT Meaning
Tax & Compliance
Explained Simply
In capital gains tax, proceeds are the starting point of the calculation: capital gain equals proceeds less base cost. SARS explains that proceeds are normally the amount received by or accrued to you on disposal, and that in some circumstances the proceeds are deemed to be the market value of the asset at the time of the disposal event. Under paragraph 35 of the Eighth Schedule, proceeds are reduced by certain amounts already included in gross income, such as a recoupment, so the same amount is not taxed twice. Outside tax, proceeds simply means what a sale brings in, for example the proceeds of a property sale before bond settlement and agent fees.
Free Tool
Capital Gains Tax Calculator
Calculate CGT on asset disposals with inclusion rates, annual exclusion and primary residence exemption.
Related Terms
- Capital Gains Tax (CGT)Capital gains tax is a tax on the profit made when selling a capital asset such as property, shares, or a business in South Africa.
- Gross IncomeGross income is, for a South African resident, the total amount in cash or otherwise received by or accrued to that person during the year of assessment, excluding receipts or accruals of a capital nature, as defined in section 1 of the Income Tax Act.