If you are married in community of property, you may be surprised to discover that 50% of your spouses’ tax liability from investments, such as the income from interest, rental, dividends and capital gains, is added to your tax bill – and vice versa.
If you are married in community of property , you may be surprised to discover that 50% of your spouses’ tax liability from investments, such as the income from interest, rental, dividends and capital gains, is added to your tax bill – and vice versa. If you did not sign an antenuptial contract, you are automatically married in community of property , which is the default marriage regime in South Africa .
As Crystal Venter, tax consultant at Tax Consulting SA, explains, this means that all assets and liabilities possessed prior to the marriage (subject to certain exceptions), as well as those acquired throughout the marriage, will be part of a communal (joint) estate. Each spouse will be required to declare their respective earnings separately, with both being required to declare their respective joint assets.Subsequently, when you and your spouse are married in community of property, the income tax implication is that you are taxed on 50% of each spouse’s individual earnings from asset
Tax Community Of Property Investments Income Liability Assets Liabilities South Africa
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