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Transfer Duty

What is it?

  • 26 April 2021 – The Transfer Duty (TDC01) form was converted

    The TDC01 form was converted from Adobe to HTML5 format. The Guide for Transfer Duty via eFiling was updated to include the form change. This guide is designed to assist you in the activation of your Transfer Duty account on eFiling, the completion of your TDC01 Declaration, registration for the allocation of a conveyancer registration number on eFiling. For more information, see the Guide for Transfer Duty via eFiling.

  • 20 April 2021 – Conversion of the TDC01 form from Adobe to HTML5 format.

    From 23 April 2021, SARS will migrate the Third-Party Data submission and Transfer Duty declaration forms from Adobe to HTML5 on eFiling.  Read more.

  • 7 December 2020 – Transfer Duty enhancements implemented
The current Bank Detail Verification process has been extended to Transfer Duty. Conveyancers will now be allowed to submit required supporting documents for Transfer Duty bank detail changes via eFiling and the SARS Online Query System. The Guide for Transfer Duty via eFiling has been updated with the changes including the new eFiling redesigned payment screens.

What is it?

Transfer Duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way. For the purpose of Transfer Duty, property means land and fixtures and includes real rights in land, rights to minerals, a share or interest in a “residential property company” or a share in a share-block company. All Conveyancers are requested to register with SARS. See more on the registration of Conveyancers here.
These are the Transfer Duty rates applied to properties acquired on or after 1 March 2020, and apply to all persons (including Companies, Close Corporations and Trusts): 
 
Value of the property (R)​​​Rate
​1 – 1000 000​​0%
1 000 001 – 1 375 000​3% of the value above R1 000 000
1 375 001 – 1 925 000​R11 250 + 6% of the value above R 1 375 000
1 925 001 – 2 475 000​R44 250 + 8% of the value above R 1 925 000
2 475 001 – 11 000 000​R88 250 +11% of the value above R2 475 000
​11 000 001 and above​R1 026 000 + 13% of the value exceeding R11 000 000
 
 
Top Tip: Make sure that you are using the correct rate, depending when the property was acquired.
 

Who pays Transfer Duty?

  • For acquisitions:
    The person acquiring the property
  • For renunciations:
    The person in whose favour or for whose benefit, any interest in or restriction upon the use or disposal of property has been renounced.
 

How do I submit my Transfer Duty Declaration?

  • A Transfer Duty Declaration can be submitted to SARS in one of two ways:
    • Through eFiling, or
    • Through Third Party Conveyance systems which integrate with eFiling.
       
  • Should supporting documents be required, it will be requested of the Conveyancer to upload such electronically. Once satisfied, the application will be approved. If no payment is required, the system will automatically release the receipt after approval.
  • Should a payment be required, the Conveyancer will make such electronically after which the receipt will be issued.
  • It is advised that all parties ensure their tax affairs are in order as property transfers are used in an attempt to ensure tax compliance across all taxes. If, for example, you are not registered or you have outstanding tax returns or payments, you will be given the opportunity to correct matters with SARS. Should matters not be resolved, steps will be taken to ensure compliance and this may delay the transfer of the property. One such step that may be taken is the appointment of the Conveyancer or any other person as an agent with the instruction to pay SARS from the proceeds of the sale. It is further recommended that you ensure that your personal details (ID number, Income Tax/VAT number) on our systems are correct as any disparity could also cause delays.
  • A taxable supply is a supply on which VAT must be charged at the standard rate (it increased from 14% to 15% from 1 April 2018) or at the zero rate. To be a taxable supply, the supplier (seller or transferor) must be a “vendor” and the supply of the property must be in the course or furtherance of an “enterprise.”
  • The supply of an entire enterprise with all its assets (including any fixed property) as a “going concern” may qualify as a zero-rated taxable supply if all the conditions in section 11(1)(e) of the VAT Act are met. Refer to Interpretation Note 57: Sale of an enterprise or part thereof as a going concern and VAT News 15 – August 2000 for more details in this regard.

When should it be paid?

Duty is payable within six (6) months from the date of acquisition. If the Transfer Duty is not paid within this period, interest calculated at 10% per annum for each completed month. A completed month is calculated as the first day from the expiry of the interest free 6 month period to the date of payment.
 
Interest will be charged at the “prescribed rate”. However, these specific provisions did not come into effect from
1 October 2012 when the Tax Administration Act became effective, but will come into effect way of Presidential Proclamation in the Government Gazette at a later date.
 
Remember that in the case of conditional sales the period of 6 months commences from the date on which the transaction was entered into (i.e. the last date of party signature to the agreement), and not the date when the contract becomes binding upon the parties (i.e. the date the conditions are fulfilled.)
 

How should it be paid?

From 1 April 2011 all Transfer Duty must be paid electronically via eFiling. This will normally be done by a Conveyancer, who acts on your behalf.
 
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