Securities Transfer Tax
The Stamp Duties Act was repealed with effect from 1 April 2009 so that lease agreements concluded from that date no longer needed to be stamped. The only remaining item that required stamps was the transfer of company shares and this duty now falls under the Securities Transfer Tax Act.
STT is levied at 0,25% of the transfer consideration as before, but stamps are no longer used. The transfer must now be declared electronically using the SARSe-STT system.
The company is liable to SARS to pay the STT within two months after the month of the transfer. The company may recover the tax from the person to whom the shares were sold.
As before, failure to pay the STT does not invalidate the transfer, but it is an offence.
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