Commercial Law

Transfer Duty-Frequently asked Questions

By 27/05/2010 June 9th, 2021 No Comments
  • 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

Ian Mc Laren

Ian Mc Laren

Ian McLaren BA LLB (WITS) General Educated St Johns College, Houghton. BA LLB University of the Witwatersrand 1984 Founded McLarens Attorneys September 1986. Right of Appearance High Court, October 1996.ExpertiseLitigation, Labour Law, Commercial Law, Family Law, Pension and Provident Funds, Customs and Excise, Wills, Deceased Estates, Trusts, Commercial Agreements, Reviewing and Drafting Government Legislation, Information Technology.Committees/ TrustsLaw Society of South Africa Information Technology Committee. Trustee Verney College Educational TrustOtherTransvaal Provincial colours for Practical Shooting. Third degree Black Belt JKS Karate. Photographer and motor cyclist Lectured for Continuing Legal Education on Information Technology issues.