The SAIT Wealth and Family Business Tax Technical Work Group’s submission to the South African National Treasury and SARS outlines key tax reform proposals for inclusion in the 2025 Budget Review. The document highlights a critical mismatch between estate duty and capital gains tax (CGT) when assets are transferred to a trust for the benefit of a surviving spouse. While estate duty allows for deferral in such cases, CGT does not, creating financial strain for vulnerable elderly spouses. The submission proposes aligning CGT and donation tax laws with estate duty provisions to extend rollover relief to trusts benefiting spouses, both during marriage and upon death. This alignment would better protect aging individuals from financial exploitation and ensure equitable tax treatment. Additionally, the document addresses the tax treatment of distributions from South African inter-vivos trusts to non-resident beneficiaries, emphasizing the need for clarity and fairness in light of recent legislative changes.
