FILTERS:

Budget 2017

23 February 2017

Slight tax relief for property transfers, as the threshold has been raised to R900 000 from the current R750 000.    

Transfer duty rate adjustments, 2017/2018

Property value (R) Rates of tax
R0 - R900 000 0% of property value
R900 001 - R1 250 000 3% of property value above R900 000
R1 250 001 - R1 750 000 R10 500 + 6% of property value above R1 250 000
R1 750 001 - R2 250 000 R40 500 + 8% of property value above R1 750 000
R2 250 001 - R10 000 000 R80 500 + 11% of property value above R2 250 000
R10 000 000 R933 000 + 13% of property value above R10 000 000

 

While the maximum effective rate of capital gains tax has been increased: 

Legal entity 2016 2017
Individuals and special trusts 16.4% 18%
Companies 22.4% 22.4%
Other trusts 32.8% 36%
     

Other changes include the raising of the provisional tax (last year's in brackets)  which is withheld on behalf of non-resident sellers of immovable property in South Africa which is set off against the normal tax liability of the non-residents. The tax to be withheld from payments to the non-residents is at a rate of 7.5% (5%) for a non-resident individual, 10% (7.5%) for a non-resident company and 15% (10%) for a non-resident trust that is selling the immovable property.

To read all documents relating to the budget go to National Treasury Department and for a summary see the Budget Pocket Guide 2017-2018

The popular Tables of Costs for Conveyancing - ready reckoner will be updated and published next week to reflect the transfer duty rates which come into effect on 1 March 2017.

Submit your comment:
 
Name
EMail
Comments
Security Picture (click to change)
Word shown in picture: