News flash regarding Transfer duty reduction in South Africa.
NEWS FLASH ON TRANSFER DUTY We want to advise all our clients of the new transfer duty rates effective for property sales concluded after 23 February 2011. The revised transfer duty table will apply to both natural persons and legal entities! On the value of the property that does not exceed R600 000: 0% On the value of property that exceeds R600 000, but not R1 000 000: 3%. On the value of property that exceeds R1 000 000, but not R1 500 000: R12 000 plus 5% on the value exceeding R1 000 000. On the value of property that exceeds R1 500 000: R37 000 plus 8% on the value that exceeds R1 500 000. A significant effect of these amendments is that it would no longer be more expensive from a transfer duty perspective to purchase property in a company or a trust as opposed to a in a natural person's name.
Author: Antonie Goosen