Update on share valuations for Estate Duty

02 November 2021
Tax
South African Accounting Academy

Shares/members’ interests that are bequeathed to the surviving spouse and not sold by the estate, would no longer be required to be approved by SARS. (This will only be the case if the full portion of the shares/members’ interest that the deceased person held is bequeathed to the surviving spouse in terms of an approved Will or intestate succession. Should any portion go to another heir or the spouse obtains it in terms of a re-distribution agreement, then approval by SARS will be required.)

The requirements for each type of valuation pack are as follows:

Ordinary shares/Member’s interest

Valuation of the shares/member’s interest.
Should the shares be in a holding company of a group, then the consolidated financial statements should also be included.
The annual financial statements as close as possible to date of death.
The annual financial statements for the 2 years prior to date of death.
Copy of the letter of executorship, (as well as a letter indicating authority to deal with SARS in this regard or power of attorney given by the executor/executrix.)
Contact details of the executor/executrix.
If there is fixed property in the company/close corporation, then a REV246 form needs to be completed and attached.
If Patents in a company/close corporation, then a valuation thereof should be attached.

Preference Shares

Copy of the Memorandum, Articles and other documents that sets out the rights attached to the preference and other shares of the company.
Copy of the financial statements of the company as close as possible to the date of death.

Loan accounts

Please note that loan accounts are not approved by SARS and should be submitted to the Master of the High Court only.

For more information, see the Estate Duty webpage.

Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more: https://cpd.accountingacademy.co.za.