Stamp duty amendments

A memo from SARS explaining how the amended stamp duty provisions will be applied. Extract from the memo:

STAMP DUTY AMENDMENTS AFFECTING LEASES OF FIXED PROPERTY
The Minister of Finance announced during February 2007 that no stamp duty will be imposed on short term lease agreements of fixed property (see paragraph 1 below). This amendment is effective from 1 June 2007.

A difficulty has arisen as the draft proposed amendment in the Taxation Laws Amendment Bill, 2007, must still be signed by the President and the Act promulgated.

At this stage until the end of May 2007 leases must still be stamped in accordance with the current provisions of the Stamp Duties Act, e.g. duty at 0,5% irrespective of the period of the lease and not in terms of the proposed amendments.

However, as from 1 June 2007 the new amendments, as indicated below, must be applied to all lease agreements executed on or after 1 June 2007 and to leases executed before 1 June 2007 where consideration becomes quantifiable from that date.

SARS Stamp Duty Memo