Chapter 5 – Transfer Duty

WHAT IS TRANSFER DUTY?

Transfer Duty is a tax that is levied on the value of any immovable property which is acquired by way of a transaction.

Property includes:

  • Land and fixtures
  • Real rights in land, excluding rights under mortgage bonds or leases
  • Rights to minerals or rights to mine for minerals including leases or sub-leases to mine for minerals
  • A share or interest in a “residential property company”
  • A contingent right to residential property or share or member’s interest in a “residential property company” held by a discretionary trust (not a special trust), where the acquisition of the right is?
    • In consequence of an agreement for consideration in relation to property held by that trust
    • Accompanied by a change in the debt or security structure of the trust; or accompanied by a change in the trust’s trustees.
  • A share in a share-block company.

The following are also regarded as TRANSACTIONS:

  • Antenuptial and postnuptial contracts
  • Donatio mortis causa (a gift made in contemplation of death)
  • Partition agreements
  • Redistribution agreements (in the process of the liquidation of a deceased estate)
  • Nomination agreements
  • Cession or assignment
  • Cancellation agreements
  • A decree of divorce
  • By way of prescription
  • Expropriation
  • Inheritance
  • Massing of estates
  • Marriage within community of property
  • Conversion of close corporations into private companies, or vice versa.

Please click here for the detailed Transfer Duty Guide (pdf – 114 pages)

For frequently asked questions on Transfer Duty, click here. (pdf – 19 pages)

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