Page 189 - Juta's Indirect Tax

s 1 SECURITIES TRANSFER TAX ACT 25 OF 2007 s 1 SECURITIES TRANSFER TAX ACT 25 OF 2007
[ASSENTED TO 21 DECEMBER 2007] [DATE OF COMMENCEMENT: 1 JULY 2008]
(English text signed by the President)
as amended by
Taxation Laws Amendment Act 3 of 2008 Revenue Laws Amendment Act 60 of 2008 Taxation Laws Amendment Act 17 of 2009 Taxation Laws Second Amendment Act 18 of 2009 Taxation Laws Amendment Act 7 of 2010 Taxation Laws Amendment Act 24 of 2011 Taxation Laws Amendment Act 22 of 2012 Taxation Laws Amendment Act 31 of 2013
Tax Administration Laws Amendment Act 39 of 2013 Taxation Laws Amendment Act 43 of 2014 Taxation Laws Amendment Act, 2015
ACT
To provide for the levying of a securities transfer tax in respect of every transfer of any security; and to provide
for matters connected therewith.
BE IT ENACTED by the Parliament of the Republic of
1 De nitions
In this Act, unless the context indicates otherwise—
‘bank restricted stock account’ means a bank restricted stock account as de ned in the exchange rules; [De nition of ‘bank restricted stock account’ inserted by s. 153 (1) (a) of Act 22 of 2012 – date of commencement:
1 January 2013; this de nition applies in respect of transactions entered into on or after that date.]
‘close corporation’ means a ‘corporation’ as de ned in section 1 of the Close Corporation Act, 1984 (Act 69 of 1984); ‘closing price’ means the closing price, on the date of the transaction or other manner of acquisition of a listed security, at which that security was traded on the exchange on which it is listed, as determined by that exchange on each day on which trade in that security occurs on that exchange: Provided that where the security was not traded on the date of the transaction or other manner of acquisition, the closing price of that security must be regarded as being the closing price on the last business day, preceding the date of the transaction or other manner of acquisition, on which that
security was traded on that exchange;
‘collateral arrangement’ means any arrangement in
terms of which—
(a) a person (hereafter the transferor) transfers a listed
share to another person (hereafter the transferee) for the purposes of providing security in respect of an amount owed by the transferor to the transferee;
(b) the transferor can demonstrate that the arrangement was not entered into for the purposes of the avoidance of tax and was not entered into for the purposes of keeping any position open for more than 12 months;
(c) that transferee in return contractually agrees in writing to deliver an identical share, as de ned in section 1 of the Income Tax Act, to that transferor within a period of 12 months from the date of transfer of that listed share from the transferor to the transferee;
(d) that transferee is contractually required to compensate that transferor for any distributions in respect of the listed share (or a share in a resultant company acquired by virtue of a listed share held in an amalgamated company as contemplated in section 44 (6) of the Income Tax Act) which that transferor would have been entitled to receive during that period had that arrangement not been entered into; and
South Africa, as follows:—
(e) that arrangement does not affect the transferor’s bene ts or risks arising from uctuations in the market value of that listed share (or a share in a resultant company acquired by virtue of a listed share held in an amalgamated company as contemplated in section 44 (6) of the Income Tax Act),
but does not include an arrangement where the transferee has not transferred the identical share contemplated in paragraph (b) to the transferor within the period referred to in that paragraph;
[De nition of ‘collateral arrangement’ inserted by s. 137 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; this de nition applies iro any collateral arrangement entered into on or after that date.]
‘Commissioner’ means the Commissioner for the South African Revenue Service;
‘company’ means any corporation, or company incorporated, established or formed by or under any law;
‘exchange’ means an ‘exchange’ as de ned in section 1 of the Financial Markets Act and licensed under section 9 of that Act;
[De nition of ‘exchange’ substituted by s. 110 (1) (a) of Act 43 of 2014 – substitution deemed to have come into operation on 3 June 2013.]
‘exchange rules’ means the exchange rules as de ned in section 1 of the Financial Markets Act or an exchange directive contemplated in section 17 (2) (z) of that Act;
[De nition of ‘exchange rules’ inserted by s. 153 (1) (b) of Act 22 of 2012 (date of commencement: 1 January 2013; this de nition applies iro transactions entered into on or after that date) and substituted by s. 110 (1) (b) of Act 43 of 2014 – substitution deemed to have come into operation on 3 June 2013.]
‘Financial Markets Act’ means the Financial Markets Act, 2012 (Act 19 of 2012);
[De nition of ‘Financial Markets Act’ inserted by s. 110 (1) (c) of Act 43 of 2014 – insertion deemed to have come into operation on 3 June 2013.]
‘general restricted stock account’ means a general restricted stock account as de ned in the exchange rules; [De nition of ‘general restricted stock account’ inserted by
s. 153 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013; this de nition applies in respect of transactions entered into on or after that date.]
‘Income Tax Act’ means the Income Tax Act, 1962 (Act 58 of 1962);
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SECURITIES TRANSFER TAX ACT