Real Estate Investor Magazine South Africa April 2015 | Page 37

FINANCE

Transfer Duties

What impact will this have on the property market?
BY MEGAN DIENER

T

axes are set to increase this year following
Finance Minister, Nhlanhla Nene’s, first annual
Budget Speech. However, the adjustment in
transfer duties is good news for the property industry.
If a property transaction is not subject to Value Added
Tax (VAT), a purchaser is liable to pay transfer duty to

The rates and brackets for transfer duty for
this year will be amended as follows:

the South African Revenue Service (SARS), in terms
of the Transfer Duty Act (No. 40 of 1949), based on a
sliding scale, depending on the value of the property
purchased. Transfer duty rates were last adjusted for
the 2011 tax year.

The previous rates and brackets of transfer
duty in January this year were as follows:

Property value

Rates of tax

Property value

Rates of tax

R0-R750 000

0%

R0-R600 000

0%

R750 001 – R1, 250