Page 684 - SAIT Compendium 2016 Volume1

s 1 TRANSFER DUTY ACT 40 OF 1949 s 2
‘South African Revenue Service’ means the South African Revenue Service established by section 2 of the South African Revenue Service Act, 1997;
[De nition of ‘South African Revenue Service’ inserted by s. 34 (1) of Act 34 of 1997.]
‘spouse’ in relation to any person, means the partner of such person—
(a) in a marriage or customary union recognised in terms
of the laws of the Republic;
(b) in a union recognised as a marriage in accordance
with the tenets of any religion; or
(c) in a same-sex or heterosexual union which the
Commissioner is satis ed is intended to be permanent:
Provided that a marriage or union contemplated in paragraph (b) or (c) shall, in the absence of proof to the contrary, be deemed to be a marriage or union without community of property;
[De nition of ‘spouse’ inserted by s. 1 (d) of Act 5 of 2001.] ‘Tax Administration Act’ means the Tax Administra-
tion Act, 2011;
[De nition of ‘Tax Administration Act’ inserted by s. 271 of Act 28 of 2011.]
‘transaction’ means—
on or after the date of commencement of this Act by way of a transaction or in any other manner, or on the amount by which the value of any property is enhanced by the renunciation, on or after the said date, of an interest in or restriction upon the use or disposal of that property, at the rate of—
(a) . . .
[Para. (a) substituted by s. 2 (1) of Act 136 of 1992 and by
s. 3 (1) of Act 97 of 1993, amended by s. 14 (1) (a) of Act 9 of 2006 and deleted by s. 2 (1) (a) of Act 24 of 2011.]
(a)
(b)
(c)
in relation to paragraphs (a) and (c) of the de nition of ‘property’, an agreement whereby one party thereto agrees to sell, grant, waive, donate, cede, exchange, lease or otherwise dispose of property to another person or any act whereby any person renounces any right in or restriction in his or her favour upon the use or disposal of property; or
[Para. (a) substituted by s. 1 (e) of Act 24 of 2011.]
in relation to any shares or member’s interest contemplated in paragraph (d) or (e) of the de nition of ‘property’, an agreement whereby one party thereto agrees to sell, grant, waive, donate, cede, exchange, issue, buy-back, convert, vary, cancel or otherwise dispose of any such shares or member’s interest to another person or any act whereby any person renounces any right in or restriction in his or her favour upon the use or disposal of any such shares or member’s interest; or
in relation to a discretionary trust, the substitution or addition of one or more bene ciaries with a contingent right to any property of that trust, which constitutes residential property or shares or member’s interest contemplated in paragraph (d) or (e) of the de nition of ‘property’ or a contingent right contemplated in paragraph (f) of that de nition;
[Para. (b) amended by s. 5 (1) of Act 106 of 1980, substituted by s. 2 (1) of Act 136 of 1992 and by s. 3 (1) of Act 97 of 1993, amended by s. 2 (1) of Act 32 of 1999, substituted by s. 2 (1) of Act 30 of 2002 and by s. 31 (1) of Act 12 of 2003, amended by s. 1 (1) of Act 16 of 2004 and by s. 1 (1) of Act 9 of 2005 and substituted by s. 14 (1) (b) of Act 9 of 2006, by s. 2 (1) (b) of Act 24 of 2011 and by s. 2 (1) of Act 13 of 2015 – date of commencement: deemed to have been 1 March 2015; the substitution applies iro property acquired or interest or restriction in any property renounced on or after that date.]
(b)
subject to subsection (5)—
(i) 0 per cent of so much of the said value or the said
amount, as the case may be, as does not exceed
R750 000;
(ii) 3 per cent of so much of the said value or the
said amount, as the case may be, as exceeds
R750 000 but does not exceed R1,25 million;
(iii) 6 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1,25 million but does not exceed R1,75 million;
(iv) 8 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1,75 million
but does not exceed R2,25 million; and
(v) 11 per cent of so much of the said value or the said amount, as the case may be, as exceeds
R2,25 million.
Prelex
Wording of para. (b) in force until 1 March 2015 (b) subject to subsection (5)—
(i) 0 per cent of so much of the said value or the said amount, as the case may be, as does not exceed R600 000;
(ii) 3 per cent of so much of the said value or the said amount, as the case may be, as exceeds R600 000 but does not exceed R1 million;
(iii) 5 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1 million, but does not exceed R1,5 million; and
(iv) 8 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1,5 million.
[De nition of ‘transaction’ substituted by s. 2 (1) (d) of Act 74 of 2002.]
‘trust’ means any trust consisting of cash or other assets which are administered and controlled by a person acting in a duciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person.
[De nition of ‘trust’ added by s. 8 (1) (b) of Act 37 of 1996.] [Sub-s. (1), previously s. 1, renumbered by s. 271 of Act
28 of 2011.]
(2) Unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Tax Administration Act bears that meaning for purposes of this Act.
[Sub-s. (2) added by s. 271 of Act 28 of 2011.]
2 Imposition of transfer duty
(1) Subject to the provisions of section 9, there shall be levied for the bene t of the National Revenue Fund a transfer duty (hereinafter referred to as the duty) on the value of any property (which value shall be determined in accordance with the provisions of sections 5, 6, 7 and 8) acquired by any person
[Sub-s. (1) substituted by s. 3 (1) (a) of Act 88 of 1974 and amended by s. 9 (1) (a) of Act 37 of 1996.]
(2) The Minister of Finance may announce that, with effect from a date mentioned in that announcement—
(a) the rates of transfer duty contemplated in subsection
(1) will be altered to the extent mentioned in the announcement; or
[Para. (a) substituted by s. 1 (1) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 1 March 2015; this substitution applies iro any property acquired or interest or restriction in any property renounced on or after that date.]
676 SAIT CompendIum oF TAx LegISLATIon VoLume 1
Prelex
Wording of para. (a) in force until 1 March 2015
(a) the rate of transfer duty contemplated in subsection
(1) will be reduced to the extent mentioned in the announcement; or