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Transfer Duty-Frequently asked Questions

How is transfer duty calculated?

How is transfer duty calculated?
- 0{bb7c59228909ee3c635bb54164678f79c6c2320af74994b444cd69be7e87e9c7} when the value of the transaction does not exceed R 500 000.00.
- 5{bb7c59228909ee3c635bb54164678f79c6c2320af74994b444cd69be7e87e9c7} of the value of the transaction is between R 500 000.00 and 1 000 000.00.
- 8{bb7c59228909ee3c635bb54164678f79c6c2320af74994b444cd69be7e87e9c7} of the value the transaction where the amount exceeds R 1000 000.00.
What is the penalty for non payment of Transfer Duty? The penalty for non payment of transfer duty is 10{bb7c59228909ee3c635bb54164678f79c6c2320af74994b444cd69be7e87e9c7} per annum , calculated monthly from the date of acquisition to date of payment.
Are Public benefit organizations are exempt from payment of transfer duty? YES
In a divorce where one spouse transfers his/her half share in a property to the other, will transfer duty will be payable on that share? YES
Could you have a situation where both Transfer duty and vat are payable? NO. In a transaction, a property may be subject to VAT or transfer duty, not both.
Is Property acquired by way of donation will be subject to both Donations tax and transfer duty? YES.
Can a sale of a business as a going concern be zero rated? Yes, subject interalia to the proviso that:
- Both parties are VAT Vendors.
- The enterprise must be an income-earning activity.
What is the situation if a person acting as an agent for some other person fails to disclose the name and address of his/her principle? Double transfer duty will be payable.
If the shares in a company owning property are transferred, on what basis is Transfer duty payable? Transfer duty is is payable on the fair value of the underlying property.
If a person acquires property on behalf of a trust to be formed, will transfer duty will be payable twice? YES, once by the person concerned and once by the trust.

Ian Mc Laren

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