Transfer Duty
Transfer Duty is payable on most fixed property transfers except where the sale is subject to VAT (see how this works here) and is the same whether the buyer is a trust, a person or a company.
The rates are as follows-
2012 (agreement on or after 23 February 2011)
Buyer |
Value |
Rate |
Any |
R0 – R600 000 |
0% |
Any |
R600 001 – R1m |
3% on value above R600 000 |
Any |
R1 000 001 – R1,5m |
R12 000 + 5% on value above R1m |
Any |
R1 500 001 plus |
R37 000 + 8% on value above R1,5m |
2011
Buyer |
Value |
Rate |
Individual or Special Trust |
R0 – R500 000 |
0% |
Individual or Special Trust |
R500 001 – R1m |
5% on value above R500 000 |
Individual or Special Truat |
R1m + |
R25 000 + 8% on value above R1m |
Company or CC |
8% |
|
Trust |
8% |
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Tip There is no transfer duty on fixed property bequeathed in a Will.
Tip There is no transfer duty when a trust distributes fixed property to a beneficiary who is related to the donor within the third degree of consanguinity (roughly great grand parent to great grand child, but also sideways).
Trap Transfer duty is payable when fixed property is transfered between spouses.
Trap If there is a sale of shares of a company or CC that mainly owns residential property, then the property itself is deemed to have been sold and transfer duty is payable.
Tip If there is a sale of shares of a company or CC that mainly owns commercial property, then the property itself is not deemed to have been sold and no transfer duty is payable. But beware, there are other possibly very serious traps for the buyer.
Trap Beware the Double Transfer Duty trap.
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