Unit 6 - Estate Duty

Question 1

Which act is estate duty governed by?

Answer 1

Estate Duties Act 45 of 1955

Separate computation to income tax
Very similar to donations tax computation

Question 2

When is Estate Duty payable?

Answer 2

Once estate is wound up and assets are being distributed.

Question 3

What is estate duty?

Answer 3

Tax upon dutiable amount of the deceased estate (only natural persons)

i.e. Tax on transfer of wealth

Question 4

@ what rate is estate duty taxed?

Answer 4

Value of assets (dutiable amount) < R30 mil
= 20% x dutiable amount of the Estate

Value of assets (dutiable amount) > R30 mil
= 25% x dutiable amount of the Estate

Dutiable amount = Net value - Abatement (R3.5 mil)

Question 5

Who is responsible to perform the estate duty calculation?

Answer 5

The executor of the estate.