Tax Guide for Small Businesses 20 20 /2
Fair market value or consideration
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LAPD-Gen-G09-Tax-Guide-for-Small-Businesses
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- 3.11.3 Transfer duty or VAT payable
Fair market value or consideration
Rate of duty Not exceeding R1 000 000 0% Exceeding R1 000 00 but not R1 375 000 3% of the value exceeding R1 000 000 Exceeding R1 375 000 but not R1 925 000 R11 250 + 6% of the value above R 1 375 000 Exceeding R1 925 000 but not R2 475 000 R44 250 + 8% of the value above R 1 925 000 Exceeding R2 475 000 but not R11 000 000 R88 250 +11% of the value above R2 475 000 Exceeding R 11 000 000 R1 026 000 + 13% of the value exceeding R11 000 000 The above rates apply to all persons, regardless of whether the person acquiring the property is a natural person, trust, company or other juristic person. See the Transfer Duty Guide for the rates that apply when the date of acquisition of the property is before 1 March 2017. 3.11.3 Transfer duty or VAT payable In order to ensure that the sale of fixed property is not subject to both VAT and transfer duty, the Transfer Duty Act contains an exemption from transfer duty to the extent that the supply is subject to VAT. The provisions of the VAT Act will therefore, normally take precedence over the Transfer Duty Act if the supplier is a vendor. Sometimes the supply of fixed property may be subject to transfer duty even if the seller is a vendor. For example, the sale of a vendor’s private residence, or the sale of property used by a vendor for the purposes of employee housing will be subject to transfer duty, since these supplies are not in the course or furtherance of the enterprise carried on by the vendor. If the sale of fixed property is part of the supply of an entire enterprise to another VAT vendor, which meets the requirements of a going concern under section 11(1)(e) of the VAT Act, VAT will be charged at the zero rate on all the enterprise assets (including the fixed property). In this case, no transfer duty will be payable on the property. All payments of transfer duty and any TDC01 returns which may be required for the processing of transactions must be submitted to SARS via SARS eFiling, since the manual submission of forms or payments is no longer accepted. SARS issues a transfer duty receipt on payment of the tax, or an exemption receipt is issued if the transaction is exempt from transfer duty. Note, however, that a transaction falling under the threshold is not exempt from transfer duty. It simply means that the receipt will be issued at 0% and no transfer duty will be charged. Tax Guide for Small Businesses (2020/2021) 75 In most cases, the property transaction will have to be lodged in the Deeds Registry to effect transfer of the property into the transferee’s name. In these cases, the receipt or exemption receipt must be lodged together with the transfer documents prepared by the conveyancer attending to the transfer. In cases involving the acquisition of shares, rights and other interests in entities that own residential property, no transfer of property is registered in the Deeds Registry. However, any changes to the shareholding of a company or the membership of a CC or changes in a trust deed which are necessary as a result of the transaction will need to be submitted to the Companies and Intellectual Property Commission (CIPC) or the office of the Master of the High Court (as the case may be). For more information see the Transfer Duty Guide and the External Guide for Transfer Duty via eFiling (TD-AE-02-G02). Download 0.78 Mb. Do'stlaringiz bilan baham: |
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