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Transfer Duty Equality

28 October 2011   (0 Comments)
Posted by: SAIT Technical
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Transfer Duty Equality
by Michael Stein

Section 2 of the Transfer Duty Act 40 of 1949 has been amended to eliminate the discrimination between natural persons and other legal persons, for example, companies, when it comes to rates of transfer duty and to reduce the rates.

The duty is payable on the value of property acquired by a person by way of a transaction or in any other manner, or on the amount by which the value of any property is enhanced by the renunciation of an interest in or restriction upon the use or disposal of that property.

The new rates of transfer duty are contained in the Taxation Laws Amendment Bill 19 of 2011, which made its appearance this week.

The new rates are:

- 0% of so much of the value or the amount as does not exceed R600 000;

- 3% of so much of the value or the amount as exceeds R600 000 but does not exceed R1 million;

- 5% of so much of the value or the amount as exceeds R1 million but does not exceed R1,5 million; and

- 8% of so much of the value or the amount as exceeds R1,5 million.

The new rates come into operation as from 23 February 2011 and apply to property acquired or an interest or restriction in property renounced on or after that date.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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