TAX REQUIREMENTS
TRANSFER DUTY (TAX) CALCULATIONS
Transfer Duty (tax) is payable by the purchaser. This tax is paid to the conveyancer who in turn pays it over to The Receiver of Revenue and obtains a Transfer Duty Receipt prior to registration and in terms of the Transfer Duty Act 77 of 1964.
Transfer duty is calculated as follows:
IF THE PURCHASER IS A NATURAL PERSON (property to be owned by a purchaser in his/her personal name):
| Purchase Price | Transfer Duty |
| R0 - R500 000 | nil |
| R500 001 - R1 000 000 | 5% |
| R1 000 0001 and above | 8% |
IF THE PURCHASER IS A LEGAL ENTITY (property to be owned by a company/close corporation/ trust):
8% on full purchase price
In certain circumstances, Value Added Tax (VAT) is applicable instead of Transfer Duty. This would only pertain to commercial properties or properties which generate income and are bought and sold as going concerns.
Your CENTURY 21 agent will advise you accordingly.