CHANGES IN TRANSFER DUTY EFFECTIVE 23 FEBRUARY 2011
In respect of all offers to purchase dated on/or after the 23rd of February 2011 the transfer duty in respect of natural persons and other entities such as companies, close corporations and trusts will be as follows:-
1. R0 – R600,000 Transfer Duty Payable - R0
2. From R600,000 – R1,000,000 Transfer Duty Payable - 3% of the purchase price from R600,000
3. From R1,000,000 – R1,500,000 Transfer Duty Payable R12 000,00 plus - 5% to the purchase price from R1,000,000
4. From R1,500,000 – unlimited Transfer Duty Payabale R37 000,00 plus - 8% to the purchase price from R1,500,000
Previously Companies, Close Corporations and Trusts paid an 8% flat rate of the purchase price as transfer duty irrespective of the purchase price which made it very expensive to purchase properties in legal entities. From the 23rd of February 2011 Companies, Close Corporations and Trusts will pay the same transfer duty as natural persons.
EXAMPLES OF SAVINGS:-
Transfer on purchase price of R1,000,000 Old Tariff - R25,000 New Tariff - R12 000 Saving - R13 000
Transfer on purchase price of R1,500,000 Old Tariff R65,000 New Tariff - R37,000 Saving R28 000
Transfer on purchase price of R1,000,000 Old Tariff - R80,000 New Tariff - R12,000 Saving - R68,000
Transfer on purchase price of R1,500,000 Old Tariff - R120,000 New Tariff - R37,000 Saving - R83,000
The above changes in transfer duty tariffs will be a great boost to the property industry and should be welcomed by everyone involved.