Slight tax relief for property transfers, as the threshold has been raised to R900 000 from the current R750 000.
Transfer duty rate adjustments, 2017/2018
| Property value (R) | Rates of tax |
| R0 - R900 000 | 0% of property value |
| R900 001 - R1 250 000 | 3% of property value above R900 000 |
| R1 250 001 - R1 750 000 | R10 500 + 6% of property value above R1 250 000 |
| R1 750 001 - R2 250 000 | R40 500 + 8% of property value above R1 750 000 |
| R2 250 001 - R10 000 000 | R80 500 + 11% of property value above R2 250 000 |
| R10 000 000 | R933 000 + 13% of property value above R10 000 000 |
While the maximum effective rate of capital gains tax has been increased:
| Legal entity | 2016 | 2017 |
| Individuals and special trusts | 16.4% | 18% |
| Companies | 22.4% | 22.4% |
| Other trusts | 32.8% | 36% |
Other changes include the raising of the provisional tax (last year's in brackets) which is withheld on behalf of non-resident sellers of immovable property in South Africa which is set off against the normal tax liability of the non-residents. The tax to be withheld from payments to the non-residents is at a rate of 7.5% (5%) for a non-resident individual, 10% (7.5%) for a non-resident company and 15% (10%) for a non-resident trust that is selling the immovable property.
To read all documents relating to the budget go to National Treasury Department and for a summary see the Budget Pocket Guide 2017-2018
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 2017.
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