SARS enhances Transfer Duty refund system
24 February 2014
Posted by: Author: Lorys Charalambous
Author: Lorys Charalambous (Tax-News)
As part of the South African Revenue Service's (SARS's) ongoing development of the Transfer Duty regime, the agency is to improve the duty refund process.
The ultimate goal of the change is to enable simpler management of transactions for conveyances. Following the introduction of electronic submission for Transfer Duty declarations and the eAccount for Transfer Duty (a facility on eFiling), SARS has decided that, due to the considerable risks and delays associated with the use of manual checks, it will not process manual requests for Transfer Duty refunds after February 17, 2014.
Refunds for a cancelled Transfer Duty declaration must now be made via eFiling using the eAccount management-Refund function, which offers quicker access to credits and enables the conveyancer to request a refund, reallocate a credit to another debit, and request an interim statement of account.
Transfer Duty is payable on transactions involving properties whose value exceeds ZAR600,000 (USD54,550). Duty of 3 percent is payable on transactions between that value and ZAR1m. Properties valued between ZAR1m and ZAR1.5m face a transfer duty of ZAR12,000 plus duty at 5 percent of the value of the transaction exceeding ZAR1m. Properties worth more than ZAR1.5m face transfer duty of ZAR37,000 plus 8 percent of the value of the transaction above ZAR1.5m.
A refund may be requested if Transfer Duty has been paid in excess, the transaction has been cancelled, or the transaction has been declined.
This article first appeared on tax-news.com.