Trust Taxation Reference | TradeAnswers

Trust Taxation Reference

Figures current at 29 September 2026. Source: TradeAnswers.

Rates that apply to a trust
Item	Trust	Individual, top bracket	Company
Income tax rate	45%	45%	27%
CGT inclusion rate	80%	40%	80%
Effective CGT rate	36%	18%	21.6%
Annual CGT exclusion	None	R50,000	None
Interest exemption	None	R23,800	None

Where the income is taxed
Situation	Taxed in the hands of
Income distributed to a resident beneficiary in the same year	The beneficiary, at their rate
Income retained in the trust	The trust, at 45%
Income from assets donated by a living donor	The donor, under attribution
Income of a special trust for a disabled person	At individual rates
Capital gain distributed in the same year	The beneficiary, at their inclusion rate

Section 7C, the interest-free loan rule
Item	Rule
What it targets	An interest-free or low-interest loan to a trust
Deemed donation	The shortfall against the official rate of interest
Official rate	8.25%
Donations tax	20% on the deemed donation above the annual exemption
Annual donations exemption	R150,000 for a natural person

Data maintained by TradeAnswers · updated as the figures change