There is no transfer duty on property under r900 000. Transfer duty also has to be paid within 6 months from date of acceptance of the offer to purchase by the seller otherwise penalties will be payable on the late payment of the transfer duty. Imposition of transfer duty 1 subject to the provisions of section 9, there shall be levied for the. Real rights in land, excluding rights under mortgage bonds or leases. Transfer duty is a tax that is levied on the value of any property that is acquired. Click to view and download notices related to the transfer duty act no. However, there is a requirement that at least 26% of the attributable units of production of prospecting or mining projects should be held by historically disadvantaged south africans. Feb 21, 2019 the transfer duty rates applicable have been left unchanged as per the 2019 budget. The case for the abolition of stamp duty on longterm leases is very strong. This document contains a discussion of the application of the transfer duty act, no 40 of 1949, in respect of transactions involving immovable property such as. Exemptions from obligation to pay duty exemptions from the obligation to pay transfer duty under the provisions of this act shall be allowed in the cases and to the extent hereinafter set forth, that is to say. Act to amend the transfer duty act, 1993, so as to change the rates at which transfer duty is levied. In other words effectively no vat or transfer duty would be payable on the transaction. Restitution of land rights amendment act 48 of 2003 public service amendment act 30 of 2007.
Standard bank of south africa ltd v trustees for the time being of the eila trust and others 2016 4 all sa 239 wcc. According to section 1 of the transfer duty act, a company includes a any association, corporation or company including a close corporation. Application for transfer duty exemption in terms of. This act shall be called the transfer duty act, 1993 and shall come into operation on a date to be determined by the minister of finance by notice in the gazette. Jun 17, 2015 transfer duty also has to be paid within 6 months from date of acceptance of the offer to purchase by the seller otherwise penalties will be payable on the late payment of the transfer duty. Transfer duty act, 1949, so as to provide for an exemption. Transfer duty is levied in terms of the transfer duty act no. Income tax act 65 of 1986 transfer of powers and duties of the state president act 97 of 1986 taxation laws amendment act 108 of 1986 income tax act 85 of 1987. Natural persons pay on a progressive scale at rates of 1 percent on the first. Transfer duty act updated to 19 january 2017 act 40 of 1949 notice 1241, g.
Application for transfer duty exemption in terms of section 9. The transfer duty rates applicable have been left unchanged as per the 2019 budget. The exemptions in section 91c and section 91a of the transfer duty act apply to pbos and statutory bodies meeting the requirements discussed in 4. Transfer duty act 40 of 1949 south african government. A transfer duty is payable to the central government when immovable property is. Prudent south african businesses are, where applicable, ensuring compliance with gdpr preparation that will ensure a smooth transition to their future obligations under popia. All the exemptions from transfer duty are contained in section 9 of the transfer duty act. This is one of the lessons to draw from the decision in sheriff of the high court, piketberg and another v lourens. To consolidate and amend the laws relating to transfer duty.
You can refer to the transfer duty guide for more information. The transfer duty you can expect to pay in south africa ooba. Cliffe dekker hofmeyr south africas first transfer. House of assembly of the union of south africa, as follows. Transfer duty act 14 of 1993 legal assistance centre. No account to be filed by master before duty is paid or secured. The transfer duty rates below are applicable on property acquired on or after 1 march 2019.
Calculate your bond registration and property transfer costs. Due to some uncertainty about the effective date and the scope of application, it is useful for us to again consider the precise wording and nature of. From 900 001 to r1 250 000, transfer duty is calculated at 3% of the value above r900 001. Republic of south africa form cm 42 companies act, 1973 for exchange control purposes securities transfer form client section 4 reference full name of issuer of security as shown on certificate figures words description quantity and full description of securities to be. Acts online provides legislation, including amendments and regulations, in an intuitive, online format.
Before buying anything, a purchaser should always be aware of all its obligations. Persons other than natural persons for example, companies pay the transfer duty at a flat rate of 10 percent. Securities transfer tax stt is a tax often neglected and forgotten. Apr 09, 2009 some comments have recently been made regarding the assessment of transfer duty with regards to the transfer of shares in a company and the transfer of a membership interest in a close corporation. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Transfer duty amendment act 31 of 1953 south african government. Transfer duty is payable within six 6 months of the date of acquisition of the property, failing which interest will be charged. Signed by the president on 16 may 20 be it enacted as passed by the parliament, and assented to by the president, of the republic of namibia, as follows. With acts you are guaranteed the latest and most up to date resource for your legislative needs.
Cliffe dekker hofmeyr south africas first transfer pricing. Some comments have recently been made regarding the assessment of transfer duty with regards to the transfer of shares in a company and the transfer of a membership interest in a close corporation. This document contains a discussion of the application of the transfer duty act 40 of 1949, in respect of transactions involving immovable property such as land, buildings and other real rights in connection with immovable situated in south africa. Amounts to be withheld when non resident sells immovable property in sa. Transfer duty is a tax that is levied on the value of any immovable property which is acquired by way of a transaction. Section2 amended by taxation laws amendment act 15 of 2016. This act has been updated to government gazette 39588 dated 8 january, 2016. Act to consolidate and amend the laws relating to transfer duty. South africas protection of personal information act 4 of 20 popia, expected to be fully in force in the near future, contains similar provisions to gdpr. Sars and tripartite agreements tripartite agreements are dealt with in terms of section 52 of the transfer duty act which was amended to prevent the scenario as set out above.
Jul, 2018 south africas first transfer pricing case. Property taxation in south africa1 the population of south africa is 44 million. The constitution of the republic of south africa act no. Oct 30, 2019 to consolidate and amend the laws relating to transfer duty.
In the event that the property forms part of a business and the business is sold as a going concern, if both the purchaser and the seller are registered for vat purposes, then vat will still be payable but the transaction would be zero rated. Rights to minerals or rights to mine for minerals including leases or subleases to mine for. The transfer duty act exempts from duty the acquisition of any property that falls into the category of goods supplied subject to vat. Moratorium on the payment of stamp duty or transfer duty in respect of rationalisation schemes act of 1993. If the purchaser is a company, close corporation or trust, transfer duty is payable at the flat rate of 10% of the fair value.
These penalties are calculated at 10% per annum on the unpaid amount of transfer duty, on each completed month in the period from the day payment was due. Historically, there has been no judicial precedent in south africa regarding the application of s31 of the act and in particular the important arms length principle. Transfer duty act 14 of 1993 namibia legal database. Jun 22, 2018 transfer duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way. Transfer cost calculator transfer duty calculator bond. To qualify however the assets which are necessary to carry on the enterprise must be disposed of by the seller to the purchaser and the enterprise must be an income earning activity on the relevant effective date.
Nov 12, 2014 in other words effectively no vat or transfer duty would be payable on the transaction. Introduced in 2008, the tax is levied on the transfer of shares held in south african companies or the transfer of membership interests held by south african close corporations. Republic of south africa in the high court of south africa western cape division, cape town case no. Transfer duty is payable by the person acquiring the property.
According to the transfer duty act, property transfer duty is a tax payable by buyers of all types of properties and is owed over and above the selling price rhys dyer, ceo of ooba home loans, south africas largest home loan comparison service, explains that transfer duty should not be confused with transfer costs, which include all the expenses associated with a property transfer, such. Transfer duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way. For the purpose of transfer duty, property means land and fixtures and includes real rights in land, rights to minerals, a share or interest in a residential property company or a share in a shareblock company. South african revenue service act 341997 paia manual. In the larger municipalities, the local government tends to use their own. If the purchaser is a natural person, then transfer duty is payable at standard natural person rates, i. Income tax act 28 of 1997 south african revenue service act 34 of 1997. Income tax act 28 of 1997 south african revenue service act 34 of. A transfer duty is payable to the central government when immovable property is acquired. Tax exemption unit teu a division within sars having special responsibility for matters relating to exemption from speci. Transfer duty duty payable on the transfer of property in terms of the transfer duty act no. Commissioner means the commissioner for the south african revenue service appointed in terms of section 6 of the south african revenue service act, 1997 act 34 of 1997, or the acting commissioner designated in terms of section 7 of that act. The payment of vat always takes precedence over transfer duty.
Section 2 amended by rates and monetary amounts and amendment of revenue laws act 14 of 2017. Section 31 of the income tax act, no 58 of 1962 act contains south africas transfer pricing provisions which constitutes one of the most contentious areas of tax law not only in south africa, but around the world. A mining charter dealing with the transformation of the mining industry to assist the entrance of historically disadvantaged. Be it enacted by the state president and the parliament of the republic of south africa, as follows. Income tax act 65 of 1986 transfer of powers and duties of the state president act 97 of 1986. He did, however, express concern that the repeal of the stamp duties act may lead to the undermining of transfer duty, and that the south african revenue service sars was considering whether transfer duty should be legislatively applied to longterm leases. Whereas the constitution of the republic of south africa, 1996 act no. The interest rate displayed here is the current, national, prime interest rate, as. South african revenue service ins by s 34 of act 34 of 1997. Restitution of land rights amendment act 48 of 2003. The transfer duty rates remained unchanged for the 2012 2015 tax years. Property includes, amongst other things, land and fixtures, real rights in land, rights to minerals, a share or interest in a residential property company or a share in a shareblock company.