TRANSFER DUTY

when is it not payable?


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Firstly, according to our law, transfer duty is payable to the Receiver of Revenue in terms of the Transfer Duty Act 40 of 1949.  It is important to note that the act also provides for exceptions when transfer duty would not be payable.

Transfer duty is payable when a transfer of property occurs. However, under certain circumstances a transaction may be exempt from transfer duty because another tax is payable.

In terms of section 9 of the Transfer Duty Act the following transactions do not attract the payment of transfer duty:
  1. Transactions between, or to, Government bodies
  2. Transfer of property for religious, charitable or educational institutions
  3. Transfer to a body that is acquiring property for a public hospital
  4. An heir who inherits property.  In this case, estate duty (another form of tax) becomes payable.
  5. A surviving spouse who acquires property from a deceased spouse or a divorced spouse acquiring from divorced spouse.
     
  6. Instances where a joint owner acquires whole property form a co-owner
  7. Conversion of a share-block-scheme into a sectional title scheme
  8. Re-acquisition of expropriated property
  9. A rectification transfer. This transfer occurs where the initial transfer was incorrect and the property needs to be transferred to the parties who are rightly entitled thereto.
  10. Transfer of half share to a spouse subsequently married in community of property.  A transfer in the correct sense does not occur. An application can be done to the deeds office to endorse the title deed to the effect that the party is now married in community of property.  Once endorsed the parties are 50/50 owners of the property.
  11. In transactions where valued added tax (VAT) is payable

We hope this is informative and sheds some light on your next purchase!  If you have any other queries, please feel free to mail us!