Introduction
The Minister of Finance announced a change in the rate of Transfer Duty in his budget speech on 15 February
Sales affected
All sales of property to natural persons on or after 1 March 2006 will benefit from the new lower rates. Sales to Companies, Close Corporations, Trusts will still attract Transfer Duty of 8% of the price.
New rates of Transfer Duty
Property value |
Rates of tax |
R0 - R500 000 |
0% |
R500 001 - R1 000 000 |
5% above R500 000 |
R1 000 001 and above |
R25 000 plus 8% on the value above R1 000 000 |
|
Old rates of Transfer Duty
Property value |
Rates of tax |
R0 - R190 000 |
0% |
R190 001 - R330 000 |
5% on the value above R190 000 |
R330 001 and above |
R7 000 plus 8% on the value above R330 000 |
|
Examples
The difference between buying a property before and after 1 March 2006 is shown in the following table
Price |
Old Transfer Duty |
New Transfer Duty |
R250 000 |
R 3000 |
R 0 |
R320 000 |
R 6 500 |
R 0 |
R500 000 |
R20 500 |
R 0 |
R750 000 |
R40 600 |
R12 500 |
R1 000 000 |
R60 600 |
R25 000 |
R1 500 000 |
R100 600 |
R65 000 |
R2 000 000 |
R140 600 |
R105 000 |
|
IMPORTANT NOTICE REGARDING STAMP DUTY
THE THRESHOLD EXEMPTION FOR STAMP DUTIES ON LEASES HAS BEEN RAISED FROM R200 TO R500 PER AGREEMENT.
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