New requirement for transfer duties – and how much you need to pay when buying a home in 2018

The South African Revenue Service (SARS) has announced that as of 1 June 2018, it is now mandatory to complete the Deeds Number’ field section when filling out a transfer duty declaration.

SARS said that because it is a legally binding declaration, it is imperative that the correct title deed number is supplied. It added that it was important to ensure that title deed number, as currently held by the seller, is the one that is captured.

As part of the announcement, SARS also confirmed the current transfer duty costs which apply to all persons (including companies, close corporations and trusts).

Typically associated with homes, transfer duty is a tax that is payable on all types of properties and is based on the value (not the the selling price) of a property.

In South Africa, it is typically the person acquiring the property that pays the duty (in the case of acquisitions).

The duty is payable within six months from the date of acquisition. If the transfer duty is not paid within this period, interest calculated at 10% per annum for each completed month. A completed month is calculated as the first day from the expiry of the interest free 6 month period to the date of payment, SARS said.

You can find the current transfer duty rates detailed below. These rates are applicable until 28 February 2019.

Value of property Rate
0 – R900 000 0%
R900 001 – R1 250 000 3% of the value above R900 000
R1 250 001 – R1 750 000 R10 500 + 6% of the value above R 1 250 000
R1 750 001 – R2 250 000 R40 500 + 8% of the value above R 1 750 000
R2 250 001 – R10 000 000 R80 500 +11% of the value above R2 250 000
R10 000 001 and above ​R933 000 + 13% of the value above R10 000 000

Read: Here’s how much South Africans are saving up for a house deposit

Latest news

Partner Content

Show comments

Follow us

Recommended