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Budget Speech 2018


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

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