Marriage out of Community of Property (with or without accrual)
This comes into effect when you marry with an antenuptial contract. Instead of all assets and liabilities being combined into a single estate, each spouse is responsible for their own assets and debts. You and your spouse will be taxed separately on your own individual income, i.e. there is no impact on your income tax.
Marriage in Community of Property
If you marry without an antenuptial contract, you’ll by default be married in community of property. This means that all assets and liabilities belonging to you and your spouse prior to the marriage, and all assets and liabilities you have accumulated during your marriage, will fall into a joint or communal estate. Some assets and liabilities may be excluded.
Being married in community of property means that you will be taxed on half of your own investment income (interest, dividends), rental income and capital gains and half of your spouse’s investment income, rental income and capital gains. The income is taxed in this way regardless of who the asset actually belongs to.
When completing your tax return, you need to ensure you cross the correct box to indicate to SARS that you're married in community of property. The tax return will then allow you to give SARS your spouse’s ID number details. You must declare 100% of your investment income, rental income and capital gains and SARS will split it 50:50 between you and your spouse on assessment.
The other income (i.e. salary, freelance income, etc.) is taxed normally based on who has earned it.