Page 191 - Juta's Indirect Tax

s 1 SECURITIES TRANSFER TAX ACT 25 OF 2007 s 8
‘tax’ means the tax payable in terms of this Act;
‘transfer’ includes the transfer, sale, assignment or cession, or disposal in any other manner, of a security or the cancellation or redemption of that security, but does not include—
(a) any event that does not result in a change in bene cial
ownership;
(b) any issue of a security; or
(c) a cancellation or redemption of a security if the
company which issued the security is being wound up, liquidated or deregistered or its corporate existence is being nally terminated;
‘unlisted security’ means any security other than a listed security;
‘unrestricted and security restricted stock account’
means an unrestricted and security restricted stock account as de ned in the exchange rules.
[De nition of ‘unrestricted and security restricted stock account’ added by s. 153 (1) (d) 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.]
2 Imposition of tax
(1) There must be levied and paid for the bene t of the National Revenue Fund a tax, to be known as the securities transfer tax, in respect of—
(a) every transfer of any security issued by—
(i) a close corporation or company incorporated, established or formed inside the Republic; or (ii) a company incorporated, established or formed
outside the Republic and listed on an exchange; and
(b) any reallocation of securities from a member’s bank restricted stock account or a member’s unrestricted and security restricted stock account to a member’s
general restricted stock account,
at the rate of 0,25 per cent of the taxable amount of that security determined in terms of this Act.
[Sub-s. (1) substituted by s. 154 (1) of Act 22 of 2012 –
date of commencement: 1 January 2013; this substituted subsection applies in respect of transactions entered into on or after that date.]
(2) The Minister of Finance may announce that, with effect from the date mentioned in that announcement— (a) the rate of securities transfer tax referred to in
subsection (1) is reduced to the extent mentioned in
the announcement; or
(b) there is a change in the provisions of this Act to the
effect that the transfer of any security is no longer
subjected to securities transfer tax.
(3) If the Minister makes an announcement referred
to in subsection (2), that reduction or change comes into effect on the date announced and continues to apply for a period of 12 months from that date, unless Parliament passes legislation giving effect to that announcement within that period of 12 months.
[Sub-s. (3) substituted by s. 60 of Act 18 of 2009.]
3 Purchase of listed securities through or from member
(1) The taxable amount in respect of any transfer as a result of every purchase of a listed security through the agency of or from a member is the consideration for which that security is so purchased.
(2) The member is liable for the tax payable in respect of a transfer of a listed security referred to in this section.
4 Transfer of listed securities effected by participant
(1) Unless tax is payable on a transfer contemplated in
section 3, the taxable amount in respect of any transfer of a listed security effected by a participant is—
Juta’s IndIrect tax 2016
(a) where that security is a security referred to in paragraph (a) of the de nition of ‘security’—
(i) the amount of the consideration for that security declared by the person who acquires that security; or (ii) if no amount of consideration referred to in subparagraph (i) is declared, or if the amount so declared is less than the lowest price of that
security, the closing price of that security. (b) . . .
[Para. (b) deleted by s. 146 (1) (b) of Act 24 of 2011.] (2) The participant is liable for the tax payable in respect
of the transfer of a security referred to in this section.
5 Other transfers of listed securities
(1) Unless tax is payable on a transfer contemplated in section 3 or 4, the taxable amount in respect of any transfer of a listed security is—
(a) where that security is a security referred to in
paragraph (a) of the de nition of ‘security’—
(i) the amount of the consideration for that security declared by the person who acquires that
security; or
(ii) if no amount of consideration referred to in
subparagraph (i) is declared, or if the amount so declared is less than the lowest price of the security, the closing price of that security.
(b) . . .
[Para. (b) deleted by s. 147 (1) (b) of Act 24 of 2011.]
(2) The person to whom the listed security is transferred is liable for the tax payable as referred to in this section.
(3) Tax payable in terms of subsection (2) must be paid through the member or participant holding the listed security in custody or, in the case where the listed security is not held in custody by either a member or participant, through the company that issued the listed security.
[Sub-s. (3) substituted by s. 126 (1) of Act 60 of 2008.]
6 Transfer of unlisted securities
(1) The taxable amount in respect of every transfer of an unlisted security is—
(a) the amount or market value of the consideration
given or, where no consideration is given or the consideration given is less than the market value of that security, the market value of that security; and
(b) in the case of the cancellation or redemption of an unlisted security, the market value of that security immediately prior to the cancellation or redemption: Provided that the market value must be determined as if that security was never cancelled or redeemed.
(2) The company which issued the unlisted security is liable for the tax payable in respect of any transfer of that unlisted security.
7 Tax recoverable from person to whom security is transferred
(1) In the case of a listed security, a member or
participant may recover the amount of the tax payable by that member or participant in respect of the transfer of that security from the person—
(a) to whom that security is transferred; or
(b) that cancels or redeems that security.
(2) In the case of an unlisted security, the company which
issued that security may recover the amount of tax payable by that company in respect of the transfer of that security from the person to whom that security is transferred.
8 Exemptions
(1) The tax is not payable in respect of a transfer of a security—
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