BUDGET 2017/2018
Minister Pravin Gordhan’s Budget Speech on Wednesday 22 February 2017 saw slight tax relief for property transfers, as the Transfer Duty threshold has been raised to R900 000 from the current R750 000.
The new rates will be applicable to Sale Agreements signed as from the 1st of March 2017.
Below is the new and old Transfer Duty tables, as taken from SARS’s website:
| 2018 (1 March 2017 – 28 February 2018)
2017 (1 March 2016 – 28 February 2017)
|
The maximum effective rate of Capital Gains tax has also been increased:
| Legal entity | 2016 | 2017 |
| Individuals and special trusts | 16.4% | 18% |
| Companies | 22.4% | 22.4% |
| Other trusts | 32.8% | 36% |
Other changes include the raising of the provisional tax which is withheld on behalf of non-resident sellers of immovable property in South Africa which is set off against the normal tax liability of the non-residents. The tax to be withheld from payments to the non-residents selling the immovable property is at a rate of:
- 5% (previously 5%) for a non-resident individual
- 10% (previously 7.5%) for a non-resident company
- 15% (previously 10%) for a non-resident trust
Further details on the new budget can be found at http://www.sars.gov.za/About/SATaxSystem/Page3/Bdget-Seches.asqx
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