Property law
WHAT IS TRANSFER DUTY?
Transfer duty is a form of property tax and is payable to the Receiver of Revenue.The purpose of transfer duty is therefore another income for the government where property is sold. The amount that must be paid is calculated according to what the government stipulates.
HOW IS TRANSFER DUTY CALCULATED?
It is calculated on the selling price or value of the property, whichever is the greater.
Natural persons(From 1 March 2006)
Example how to calculate: Purchase price
R 800 000,00-R 500 000,00= R 300 000,00* 5% = R 15 000,00 transfer duty payable.
To calculate transfer duty for a property of R 1 200 000,00,the calculation will be as follows:
Example to calculate: For the amounts between
R 1 000 000,00-R 500 000,00=R 500 000* 5%= R 25000,00.
Above R1 000 000,00 it is 8% that is payable.
Purchase price R 1 200 000,00-R 1 000 000,00 =
R200 000,00*8%=R 16000,00
The R 16000,00+R 25000,00 must be paid over.
Legal persons(Companies,Close Corporations,Trusts) (From 1 March 2006)