First Schedule

 

RATE OF ESTATE DUTY

(1) The rate of estate duty shall be—

(a)

(i) 20 per cent of the dutiable amount of the estate as does not exceed R30 million; and

(ii) 25 per cent of the dutiable amount of the estate as exceeds R30 million; or

[Paragraph (a) substituted by section 1(1) of Act 21 of 2018 effective on 1 March, 2018 and applicable in respect of the estate of a person that dies on or after that date]

(b)     a percentage of the dutiable amount of the estate as the Minister of Finance may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, 1999 (Act No. 1 of 1999), with effect from a date mentioned in that announcement:

[Words preceding the proviso substituted by section 4 of Act 15 of 2016 effective on 19 January 2017]

Provided that where duty becomes payable upon the value of any movable or immovable property or on a value determined by reference to the value of any movable or immovable property, and duty has, upon the death of any person (hereinafter referred to as the first-dying person), who died within ten years prior to the death of the deceased, become payable upon the value of that movable or immovable property or upon a value determined by reference to the value of that movable or immovable property (or any movable or immovable property for which the Commissioner is satisfied that that movable or immovable property has been substituted), the duty attributable to the value of that movable or immovable property or, as the case may be, the value determined by reference to the value of that movable or immovable property, but not exceeding (in either case) an amount equal to the value on which duty has become payable on the death of the first-dying person, shall be reduced by a percentage according to the following scale –

if the deceased dies within two years of the death of the first-dying person       100 per cent

if the deceased dies more than two years, but not more than four years after the death of the first-dying person         80 per cent

if the deceased dies more than four years, but not more than six years after the death of the first-dying person         60 per cent

if the deceased dies more than six years, but not more than eight years after the death of the first-dying person         40 per cent

if the deceased dies more than eight years, but not more than ten years after the death of the first-dying person         20 per cent

subject to a maximum reduction equal to so much of the duty previously payable upon the death of the first-dying person as is attributable to the value of that movable or immovable property or, as the case may be, to an amount equal to the value determined by reference to the value of that movable or immovable property, and as is proved to the satisfaction of the Commissioner to have been borne by the deceased.

(2)     If the Minister of Finance makes an announcement contemplated in subparagraph 1(b), that rate comes into effect on the date determined by the Minister in that announcement and continues to apply for a period of 12 months from that date subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.

[Paragraph (2) added by section 4 of Act 15 of 2016 effective on 19 January 2017]

[First Schedule amended by section 6 of Act 59 of 1957, by section 12 of Act 71 of 1961 and by section 14(1) of Act 77 of 1964, substituted by section 8 of Act 81 of 1965, amended by section 1(1) of Act 75 of 1968, substituted by section 9(1) of Act 92 of 1971 and amended by section 13(1) of Act 106 of 1980, by section 3(1) of Act 71 of 1986, by section 16(1) of Act 87 of 1988, by section 11(1) of Act 37 of 1996, by section 4(1) of Act 5 of 2001, by section 4 of Act 15 of 2016 and by section 1(1) of Act 21 of 2018]