Ghost Digest
25 February 2016 The current (2015/2016) Transfer duty rates remain the same, with one exception. Properties with a value above R10 million will attract Transfer duty at a rate of 13% as opposed to the current 11%.
Transfer duty rate adjustments, 2016/2017
Property value (R)Rates of tax R0 - R750 000 0% of property value R750 001 - R1 250000 3% of property value above R750000 -R1 250 001 -R1 750000 R15 000 + 6% of property value above R1 250 000 R1 750 001 -R2 250 000 R45 000 + 8% of property value above R1 750 000 R2 250 001 - R10000 000 R85 000 + 11% of property value above R2 250 000 R10 000 000 + R937 500 + 13% of property value=above R10 000 000
While the maximum effective rate of capital gains tax has also been increased:
Legal entity 2015 2016
Individuals and special trusts 13.65% 16.4%
Companies 18.65% 22.4%
Other trusts 27.31% 32.8%
To read all documents relating to the budget go to National Treasury Department and for a summary see the Budget Pocket Guide 2016-2017
The popular Tables of Costs for Conveyancing - ready reckoner will be updated and published next week to reflect the transfer duty rates which come into effect on 1 March 2016.
© Korbitec GhostDigest. All Rights Reserved. Note that the information in this web site and or links, is provided for information purposes only and is not intended to constitute legal advice. It is supplied subject to our legal disclaimer.