TRANSFER DUTY AND OTHER PROPERTY TAXES
The Minister of Finance has delivered the budget for 2018. The most prominent change is the increase of Value Added Tax (VAT) to 15%. If you purchase a property which is subject to VAT (on or after 1 March 2018), this increase will affect the amount that you must budget for. The calculation of Transfer Duty payable remains unchanged. We have set out below a schedule of the transfer duty payable on immovable property transactions. The other “property” tax to take note of is Estate Duty which has now increased to 25% for estates worth more than R30 million.
TRANSFER DUTY CALCULATION :
VALUE OF PROPERTY TRANSFER DUTY RATE
0 – R900 000.00 0%
R900 001.00 – R1 250 000.00 3% OF VALUE ABOVE R900 000.00
R1 250 001.00 – R1 750 000.00 R10 500.00 PLUS 6% OF VALUE ABOVE R1 250 000.00
R1 750 001.00 – R2 250 000.00 R45 000.00 PLUS 8% OF VALUE ABOVE R1 750 000.00
R2 250 001.00 – R10 000 000.00 R85 000.00 PLUS 11% OF VALUE ABOVE R2 250 000.00
R10 000 000.01 AND ABOVE R852 500.00 PLUS 13% OF VALUE ABOVE R10 000 000.00