ESTATE DUTY

06/13/2024

The general rule is that if the taxpayer is ordinarily resident in the Republic at the time of death, all of his assets (including deemed property), wherever they are situated, will be included in the gross value of his estate for the determination of duty payable thereon. Estate duty is levied at 20% on the first R30 million of the dutiable estate. Estate duty will be levied at 25% on the dutiable estate in excess of R30 million. Estate duty is levied on the South African property of non-residents.

Deemed property includes insurance policies on the life of the deceased, claims in terms of the matrimonial property act as well as property that the deceased was competent to dispose of immediately prior to his death.

The most important deductions are:

  • Debts due at date of death
  • Bequests to public benefit organisations
  • Bequests to a surviving spouse

The Act allows for a R3.5 million estate duty abatement. This abatement could rollover from the deceased to a surviving spouse, so that the surviving spouse can use a R7 million abatement on death. The portability of the deduction will apply to the extent that the first dying spouse did not use the whole abatement.

There is relief from Estate Duty in the case of the same property being included in the estates of taxpayers dying within ten years of each other. The deduction is calculated on a sliding scale varying from 100% where the taxpayers die within two years of each other and 20% where the deaths are within eight to ten years of each other.

Executor’s remuneration

An executor is entitled to the following remuneration:

  • The remuneration fixed by deceased in the will, or
  • 3.5% of gross assets
  • 6% on income accrued and collected from date of death

Executor’s remuneration is subject to VAT where the executor is registered as a vendor.


Disclaimer: The information in this article is an easy referenced overview of the South African Tax System and immovable property in South Africa. The information contained in this article is a summary of current property related information. Due to limitations in length, only key points on each topic are addressed. Words importing the masculine shall include a reference to the feminine and vice versa. We suggest that you do not act solely on material contained in this article as the nature of the information contained herein is general, and in summarised format, and may in certain circumstances be subject to misinterpretation. The information is provided with the understanding that no legal or professional advice is being rendered in this guide. We recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of this guide, no responsibility of any nature whatsoever will be accepted for any inaccuracies, errors, or omissions.