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Following the budget speech 2016, transfer duty amendments have come into effect from 1 March 2016 until the next revision. Calculations for properties under R10 000 000-00 stay the same as the previous year’s calculation, but for values that are higher, the calculation will change.

The exemption value of R750 000-00 still applies (zero transfer duty payable), and the noticeable change is in the upper property value segment.

Prior to the effected change in tariff, the scale of duty imposed on property above the value of R2 250 000-00 was fixed at the rate of R85 000-00 plus 11% of the value above R2 250 000-00.

The new change in tariff now sees an imposition of a higher rate of 13% (a 2% increase) for property values over R10 000 000-00, which equates to an increase of R20 000-00 per million.

Practically this would mean that the calculation of duty above

R2 250 000-00 but under R10 000 001-00 will be R85 000-00 plus 11% of the value above R2 250 000-00.

For property values above R10 000 000-00, the calculation will be R937 500-00 plus 13% of the value exceeding R10 000 000-00.

The table below can be used to easily calculate duty payable:

VALUE OF PROPERTY (Rand) RATE

0 – 750 000 0%

750 001 – 1 250 000

3% on the value above 750 000

1 250 001 – 1 750 000

15 000 + 6% of the value above 1 250 000

1 750 001 – 2 250 000

45 000 + 8% of the amount above 1 750 000

2 250 001 – 10 000 000

85 000 + 11% of the amount above 2 250 000

10 000 001 and above

937 500-00 + 13% of the amount above 10 000 000-00.

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