Capital Gains Tax in South Africa

This study examines the fiscal and economic policy goals of the South African government in the areas of capital formation, labour productivity, foreign and domestic direct investment, business creation, entrepreneurship, government revenue and taxpayer equity. After collating and discussing the findings of international researchers on the effects of capital gains tax on the economies, financial markets, labour markets and revenue authorities of various countries, the study discusses how capital gains tax affects the policy goals of the South African government in the aforementioned areas and concludes on the suitability of capital gains tax as a fiscal policy tool in South Africa.