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:
|Individuals and special trusts||16.4%||18%|
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.
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.