Amendments to Deceased Estates

After recent amendments in the legislation, it has been announced that there will be certain changes in the tax treatment of a Deceased Person and the Deceased Estate.

One of these changes is that the Executor would now have to register a new taxpayer with SARS, namely the Deceased Estate and that the Deceased Estate is the one who would be liable for any taxes on any income received subsequent to the date of death.

This is applicable for any person who died on or after 1 March 2016.

Previously, the income was taxed in the hands of the heirs or legatees and similarly any expenses associated with the income was allowed as a deduction. However this practice was never supported by any legislation.

With the amendment, this is now governed by legislation.

We will publish a more detail article with regards to all the amendments to deceased estates in the near future.

Engela Crocker

Senior Tax Manager, Johannesburg

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