TAX REQUIREMENTS
TRANSFER DUTY (TAX) CALCULATIONS
When it comes to property tax requirements and other legal duties involved in buying or selling a property, you need to know that you are in capable hands and that you have all the information needed to fully understand the process.
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. This is all according to the 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. A natural person, in legal terms, refers to a human being as opposed to a legal personality (also known as a body corporate, juristic person etc).
If the purchaser is a legal entity - property to be owned by a company, close corporation or trust, the rates are 8% on the full purchase price.
In certain circumstances, property tax rates may differ as 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.
Contact one of our Century 21 agents, who will advise you accordingly on the best ways to approach buying or selling a property. We can give you guidance on the legal aspects of all the transactions and, if need be, help you gain a better understanding of property tax.
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. This is all according to the 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. A natural person, in legal terms, refers to a human being as opposed to a legal personality (also known as a body corporate, juristic person etc).
| 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 or trust, the rates are 8% on the full purchase price.
In certain circumstances, property tax rates may differ as 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.
Contact one of our Century 21 agents, who will advise you accordingly on the best ways to approach buying or selling a property. We can give you guidance on the legal aspects of all the transactions and, if need be, help you gain a better understanding of property tax.
