Category: ARRANGEMENT OF SECTIONS (TDA)

Section 3A (Transfer Duty Act) – Sharia compliant financing arrangements

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3A.      Sharia compliant financing arrangements

 

(1)     For the purpose of the payment of duty in respect of any murabaha as defined in section 24JA(1) of the Income Tax Act, 1962 (Act No. 58 of 1962)-

 

(a)     the financier shall be deemed not to have acquired any property under the sharia arrangement; and

[Paragraph (a) substituted by section 3 of Act 24 of 2011 effective on 1 January 2013]

(b)     the client shall be deemed to have acquired property from the seller-

(i)      for an amount equal to the consideration paid by the financier to the seller; and

(ii)     at such time as the financier acquired the property from the seller by virtue of the transaction between the seller and the financier.

[Paragraph (b) substituted by section 3 of Act 24 of 2011 effective on 1 January 2013]

 

(2)     For the purpose of the payment of the duty in respect of any diminishing musharaka as defined in section 24JA(1) of the Income Tax Act, 1962 (Act No. 58 of 1962)-

 

(a)     the bank shall be deemed not to have acquired any property under the sharia arrangement;

(b)

(i)      where the bank and the client jointly acquire property, the client shall be deemed to have acquired the bank’s interest in the property-

(aa)   for an amount equal to the amount paid by the bank in respect of the bank’s interest in the property; and

(bb)   at the time that the seller of the asset was divested of any interest in the property by virtue of the transaction between the seller and the bank; and

(ii)     where the bank acquires an interest in property from the client, the bank shall be deemed not  to have acquired any interest in property from the client and the client shall be deemed not to have subsequently acquired any interest in that property from the bank.

 

(3)     For the purpose of the payment of duty in respect of any sukuk as defined in section 24JA(1) of the Income Tax Act, 1962 (Act No. 58 of 1962), the trust shall be deemed not to have acquired the asset from the government of the Republic.

[Subsection (3) substituted by section 3 of Act 24 of 2011 effective on 1 January 2013]

[Section 3A inserted by section 2 of Act 7 of 2010 effective on 1 January 2013]

ARRANGEMENT OF SECTIONS (TDA)

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ARRANGEMENT OF SECTIONS

Section 1 – Definitions

Section 2 – Imposition of transfer duty

Section 3 – By whom, when and to whom duty payable

Section 4 – Penalty and interest on late payment of duty

Section 5 – Value of property on which duty payable

Section 6 – Certain payments to be added to the consideration payable in respect of property

Section 7 – Certain payments excluded from the consideration payable in respect of property

Section 8 – Valuation of consideration payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash

Section 9 – Exemptions from duty

Section 10 – Administration of Act

Section 11 – Powers of the Commissioner

Section 12 – Registration of acquisition of property prohibited where duty not paid

Section 13 – Commissioner to recover amount of duty underpaid

Section 14 – Declarations to be furnished to Commissioner

Section 15 – Records of certain sales of property to be kept

Section 16 – Persons who acquire property on behalf of others shall disclose names of their principals

Section 17 – [Repealed]

Section 18 – [Repealed]

Section 19 – [Repealed]

Section 20 – [Repealed]

Section 20A – [Repealed]

Section 20B – Transactions, operations, schemes or understanding for obtaining undue tax benefits

Section 21 – Repeal of Laws

Section 22 – Short title and date of commencement

Schedule – Repeal of laws

Section 2 (Transfer Duty Act) – Imposition of transfer duty

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2. Imposition of transfer duty

(1)     Subject to the provisions of section 9, there shall be levied for the benefit of the National Revenue Fund a transfer duty (hereinafter referred to as the duty) on the value of any property (which value shall be determined in accordance with the provisions of sections 5, 6, 7 and 8) acquired by any person on or after the date of commencement of this Act by way of a transaction or in any other manner, or on the amount by which the value of any property is enhanced by the renunciation, on or after the said date, of an interest in or restriction upon the use or disposal of that property, at the rate of –

(a)     ……….

[Paragraph (a) substituted by section 2 of Act 136 of 92 and section 3 of Act 97 of 93, amended by section 14 of Act 9 of 2006 with effect from 1 March 2006 and deleted by section 2 of Act 24 of 2011 with effect from 23 February 2011]

(b)     subject to subsection (5)-

(i)      0 per cent of so much of the said value or the said amount, as the case may be, as does not exceed R1 100 000;

[Subparagraph (i) substituted by section 2(1) of Act 14 of 2017, by section 1(1) of Act 22 of 2020 and by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

(ii)     3 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1 100 000 but does not exceed R1 512 500;

[Subparagraph (ii) substituted by section 2(1) of Act 14 of 2017, by section 1(1) of Act 22 of 2020 and by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

(iii)    6 per cent of so much of the said value or the said amount, as the case may be, as exceeds R1 512 500 but does not exceed R2 117 500;

[Subparagraph (iii) substituted by section 1(1) of Act 22 of 2020 and by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

(iv)    8 per cent of so much of the said value or the said amount, as the case may be, as exceeds R2 117 500 but does not exceed R2 722 500;

[Subparagraph (iv) amended by section 2(1)(a) of Act 13 of 2016 and by section 1(1) of Act 22 of 2020 and substituted by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

(v)     11 per cent of so much of the said value or the said amount, as the case may be, as exceeds R2 722 500 but does not exceed R12 100 000; and

[Subparagraph (v) substituted by section 2(1)(b) of Act 13 of 2016, by section 1(1) of Act 22 of 2020 and by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

(vi)    13 per cent of so much of the said value or the said amount, as the case may be, as exceeds R12 100 000.

[Subparagraph (vi) added by section 2(1)(c) of Act 13 of 2016 and by section 1(1) of Act 22 of 2020 and substituted by section 1(1) of Act 19 of 2023 deemed effective on 1 March 2023 and applicable in respect of property acquired or an interest or a restriction in any property renounced on or after that date]

[Subsection (1) substituted by section 3(1)(a) of Act 88 of 1974 and amended by section 9(1)(a) of Act 37 of 1996. Paragraph (b) amended by section 5(1) of Act 106 of 1980, substituted by section 2(1) of Act 136 of 1992 and by section 3(1) of Act 97 of 1993, amended by 2(1) of Act 32 of 1999, substituted by section 2(1) of Act 30 of 2002 and by section 31(1) of Act 12 of 2003, amended by section 1(1) of Act 16 of 2004 and by section 1(1) of Act 9 of 2005 and substituted by section 14(1)(b) of Act 9 of 2006, by section 2(1)(b) of Act 24 of 2011 and by section 2(1) of Act 13 of 2015 deemed effective on 1 March, 2015 and applicable in respect of property acquired or interest or restriction in any property renounced on or after that date]

(2)     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), that, with effect from a date mentioned in that announcement-

[Words preceding paragraph (a) substituted by section 1 of Act 15 of 2016 effective on 19 January 2017]

(a)     the rates of transfer duty contemplated in subsection (1) will be altered to the extent mentioned in the announcement; or

[Paragraph (a) substituted by section 1 of Act 25 of 2015 effective on 1 March 2015]

(b)     there will be a change in the provision of this Act that will have the effect that the acquisition of or the renunciation of any interest in or restriction upon a certain class of property will no longer be subject to transfer duty.

[Subsection (2) substituted by section 1 of Act 56 of 1966, amended by section 2 of Act 66 of 1973, deleted by section 3 of Act 88 of 1974 and inserted by section 1 of Act 31 of 2005]

(3)     If the Minister makes an announcement contemplated in subsection (2), that alteration or change 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.

[Subsection (3) added by section 2 of Act 66 of 1973, deleted by section 3 of Act 88 of 1974, inserted by section 1 of Act 31 of 2005 and substituted by section 2 of Act 18 of 2009 and section 1 of Act 15 of 2016 effective on 1 March 2016 and applies in respect of any property acquired or interest or restriction in any property renounced on or after that date]

(4)     ……….

[Subsection (4) added by section 2 of Act 66 of 1973 and deleted by section 3 of Act 88 of 1974]

(5)     Where a person acquires any property consisting of or including an undivided share in any property (hereafter in this subsection referred to as the joint property), the duty payable in respect of such acquisition shall be calculated in accordance with the formula

[Words preceding the formula substituted by section 2 of Act 24 of 2011 with effect from 23 February 2011]

y    =       a       x     c

               b

in which formula –

(a)     “y” represents the duty payable;

(b)     “a” represents the value on which the duty is leviable in terms of subsection (1);

(c)     “b” represents an amount equal to the sum of –

(i)      the amount represented by “a”; and

(ii)     the value of the remainder of the joint property (being the share or shares in the joint property remaining after excluding the aforesaid undivided share), assuming such value to be an amount which bears to the value of the said undivided share (being the value thereof represented by or included in “a”) the same ratio as the said remainder (expressed as a percentage of the full ownership of the joint property without regard to the value of that property or any share therein) bears to the said undivided share (expressed as a percentage of the full ownership of the joint property without regard to the value of that property or any share therein); and

(d)     “c” represents the duty which would have been leviable at the rate prescribed in subsection (1)(b) on the amount represented by the symbol “b” in the formula if that amount had been the value on which duty was leviable under subsection (1).

[Subsection (5) added by section 3 of Act 88 of 1974]

(6)     The provisions of subsection (5) shall not apply in respect of the acquisition of an undivided share in common property which is in terms of the provisions of the Sectional Titles Act, 1986 (Act No. 95 of 1986), apportioned to a section as defined in section 1 of that Act and forms part of a unit as so defined but shall apply in respect of the acquisition of an undivided share in such unit.

[Subsection (6) added by section 3 of Act 88 of 1974 and amended by section 3 of Act 87 of 1988]

Section 3 (Transfer Duty Act) – By whom, when and to whom duty payable

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3. By whom, when and to whom duty payable

 

(1)     The duty shall within six months of the date of acquisition be payable by the person who has acquired the property or in whose favour or for whose benefit any interest in or restriction upon the use or disposal of property has been renounced.

 

(1A)  Where a person who acquires any property contemplated in paragraph (d), (e) or (g) of the definition of “property” fails to pay the duty within the period contemplated in subsection (1), the public officer of that company and the person from whom the shares or member’s interest are acquired shall be jointly and severally liable for such duty: Provided that the public officer or person from whom the shares or member’s interest was acquired, may recover any amount of duty paid in terms of this subsection in accordance with section 160 of the Tax Administration Act.

[Subsection (1A) added by section 3 of Act 74 of 2002, amended by section 2 of Act 17 of 2009 and substituted by section 271 of Act 28 of 2011 effective on 1 Oct 2012]

 

(1B)  Where a person who acquires any property contemplated in paragraph (f) of the definition of “property” fails to pay the duty within the period contemplated in subsection (1), the trust and representative taxpayer of that trust shall be jointly and severally liable for such duty: Provided that the trust or representative taxpayer may recover any amount of duty paid in terms of this subsection by the trust or representative tax payer, as the case may be, in accordance with section 160 of the Tax Administration Act.

[Subsection (1B) added by section 3 of Act 74 of 2002 and substituted by section 271 of Act 28 of 2011 effective on 1 Oct 2012]

 

(2)     Pending the completion of the declarations referred to in section 14, or the determination of the amount of duty payable under this Act, a deposit on account of the duty payable must be made by way of an electronic payment.

[Subsection (2) substituted by section 6 of Act 60 of 2001, section 1 of Act 35 of 2007 and section 12 of Act 8 of 2010 effective on 1 January 2011]

 

(3)     ……….

[Subsection (3) substituted by section 4 of Act 88 of 1974, amended by section 1 of Act 99 of 1981 and substituted by section 10 of Act 37 of 1996, section 6 of Act 60 of 2001, section 1 of Act 35 of 2007 and section 12 of Act 8 of 2010 and deleted by section 271 of Act 28 of 2011 effective on 1 Oct 2012]

 

(4)     Where, in addition to any amount of duty which is payable by any person in terms of this Act, an amount of penalty is payable by him in terms of the provisions of this Act, any payment made by that person on or after 1 April 1994 in respect of such duty or penalty which is less than the total amount due by him in respect of such duty and penalty shall for the purposes of this Act be deemed to be made –

 

(a)     in respect of such penalty; and

(b)     to the extent that such payment exceeds the amount of such penalty, in respect of such duty.

[Subsection (4) added by section 4 of Act 97 of 1993]

 

(5)     Any agreement concluded prior to 1 April 1994 between the Commissioner and the person liable for the payment of any duty or penalty which provides for the allocation of any payment to be made on or after that date otherwise than in accordance with the provisions of subsection (4) shall, in so far as it provides for such allocation, cease to have effect.

[Subsection (5) added by section 4 of Act 97 of 1993]

Section 4 (Transfer Duty Act) – Penalty and interest on late payment of duty

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4. Penalty and interest on late payment of duty

[Heading substituted by section 1 of Act 32 of 2004]

[Heading of section 4 to be substituted with effect from a date determined by the President by proclamation in the Gazette]

 

(1)     If any duty in respect of any transaction entered into before 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3, the Commissioner must in accordance with Chapter 15 of the Tax Administration Act impose a penalty, at the rate of 10 per cent per annum on the amount of the unpaid duty, calculated in respect of each completed month in the period from that date to the date of payment.

[Subsection (1) amended by section 2 of Act 70 of 1963, substituted by section 1 of Act 72 of 1970 and section 3 of Act 87 of 1982, amended by section 1 of Act 32 of 2004 and substituted by section 271 of Act 28 of 2011 effective on 1 Oct 2012]

 

(1A) If any duty in respect of any transaction entered into on or after 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3, interest shall, subject to the provisions of subsection (3), become payable at a rate equal to 10 per cent per annum of the amount of duty which remains unpaid, calculated in respect of each completed month in the period from that date to the date of payment.

[Subsection (1) inserted by section 1 of Act 32 of 2004]

[Subsection (1A) to be deleted with effect from a date determined by the President by proclamation in the Gazette]

 

(2)     For the purpose of subsection (1) a deposit on account of duty shall be deemed to be a payment of duty.

 

(3)     Whenever the Commissioner is satisfied that the delay in the determination of the value on which the duty is payable cannot be ascribed to the person liable to pay the duty, he or she may allow a reasonable extension of time within which the duty may be paid without interest if, within six months of the date of acquisition of the property –

 

(a)     a deposit on account of the duty payable is made to the Commissioner of an amount equal to the duty calculated on the amount of the consideration paid or payable or on the declared value, as the case may be; and

(b)     application is made in writing to the Commissioner for such extension of time.

[Subsection (3) substituted by section 7 of Act 60 of 2001 and amended by section 1 of Act 32 of 2004]

Section 5 (Transfer Duty Act) Value of property on which duty payable

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5. Value of property on which duty payable

 

(1)     The value on which duty shall be payable shall, subject to the provisions of this section –

 

(a)     where consideration is payable by the person who has acquired the property, be the amount of that consideration; and

(b)     where no consideration is payable, be the declared value of the property.

 

(2)    

 

(a)     If a transaction whereby property has been acquired, is, before registration of the acquisition in a deeds registry, cancelled, or dissolved by the operation of a resolutive condition, duty shall be payable only on that part of the consideration which has been or is paid to and retained by the seller and on any consideration payable by the buyer for or in respect of the cancellation thereof, provided that on cancellation or dissolution of that transaction, such property completely reverts to the seller and the original buyer has relinquished all rights and has not received nor will receive any consideration arising from such cancellation or dissolution.

[Paragraph (a) substituted by section 2 of Act 45 of 2003]

(b)     Upon the subsequent disposal of property referred to in paragraph (a), the person so disposing of it shall, in the declaration to be made by him in terms of section 14, set forth the circumstances of such previous transaction and of the cancellation thereof and shall furnish particulars relating to the payment of duty in connection therewith, and any duty payable in connection with such previous transaction but still unpaid shall be paid by the person so disposing of the property, who may thereupon recover the duty so paid from the person liable for the payment thereof in terms of section three.

 

(3)     Where a transaction provides for the payment of the whole or any part of the consideration by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash, the value of such consideration shall be determined in accordance with the provisions of section eight.

 

(4)     In the case of a transaction whereby one property is exchanged for another, and –

 

(a)     no additional consideration is payable by either party to the transaction, the value on which duty shall be payable in respect of the acquisition of each property shall, subject to the provisions of subsections (6) and (7), be the declared value of each property: Provided that if the properties exchanged are not of equal value, duty shall, subject to the said provisions, be paid in respect of the acquisition of each property on the declared value of the property which has the greater value;

(b)     additional consideration is payable by either party to the transaction, the value on which duty shall be payable, shall, subject to the provisions of subsections (6) and (7), be –

(i)      in respect of the acquisition of the property for which the additional consideration is payable, the declared value of that property or, the declared value of the property given in exchange for that property plus the additional consideration payable, whichever is the greater; and

(ii)     in respect of the acquisition of the other property, the declared value thereof, or the declared value of the property given in exchange for that property less the additional consideration payable, whichever is the greater.

 

(5)     In the case of the cession of a lease or sub-lease referred to in paragraph (c) of the definition of “property” in section 1, the value on which duty shall be payable shall be the amount of the consideration payable by the cessionary to the cedent in respect of the cession or, if no consideration is so payable, the declared value of the property acquired under the cession.

[Subsection (5) substituted by section 4 of Act 24 of 2011]

 

(6)     If the Commissioner is of opinion that the consideration payable or the declared value is less than the fair value of the property in question he may determine the fair value of that property, and thereupon the duty payable in respect of the acquisition of that property shall be calculated in accordance with the fair value as so determined or the consideration payable or the declared value, whichever is the greatest: Provided that the provisions of this subsection shall not be construed as preventing the Commissioner, after a determination of the fair value of the property in question has been made, from revising such determination or from making a further determination of the fair value of that property under this subsection, provided such revision or further determination is made not later than two years from the date on which duty was originally paid in respect of the said acquisition.

[Subsection (6) substituted by section 6 of Act 103 of 1969]

 

(7)     In determining the fair value in terms of subsection (6), the Commissioner shall have regard, according to the circumstances of the case, inter alia to –

 

(a)     the nature of the real right in land and the period for which it has been acquired or, where it has been acquired for an indefinite period or for the natural life of any person, the period for which it is likely to be enjoyed;

(b)     the municipal valuation of the property concerned;

[Paragraph (b) substituted by section 15 of Act 9 of 2006]

(c)     any sworn valuation of the property concerned furnished by or on behalf of the person liable to pay the duty;

(d)     any valuation made by the Director-General: Mining Resources or by any other competent and disinterested person appointed by the Commissioner.

[Paragraph (d) substituted by section 4 of Act 24 of 2011]

 

(8)     If the fair value of property as determined by the Commissioner –

 

(a)     exceeds the amount of the consideration payable in respect of that property, or the declared value, as the case may be, by not less than one-third of the consideration payable or the declared value, as the case may be, the costs of any valuation made by a person referred to in paragraph (d) of subsection (7) (other than the Director-General: Mining Resources) shall be paid by the person liable for the payment of the duty;

[Paragraph (a) substituted by section 4 of Act 24 of 2011]

(b)     does not exceed the said consideration or declared value as the case may be, to the extent set out in paragraph (a), the costs of the valuation shall be borne by the State.

 

(9)     The provisions of subsections (6) and (7) shall not apply in respect of the acquisition of property sold by public auction, unless the Commissioner is satisfied that the sale was not a bona fide sale by public auction, or that there was collusion between the seller and the purchaser or their agents.

 

(10)   In the case of the acquisition of property in terms of Item 8 of Schedule 1 to the Share Blocks Control Act, 1980 (Act No. 59 of 1980), the value of that property shall be reduced by an amount equal to the value of any supply made to the person acquiring that property, of a share mentioned in section 8(17) of the Value-Added Tax Act, 1991 (Act 89 of 91), where –

 

(i)      tax in respect of such supply has been paid in terms of that Act; or

(ii)     such supply is in terms of that Act subject to tax at the rate of zero per cent,

if the value of such share wholly or partly constitutes consideration for the acquisition of that property.

[Subsection (10) added by section 3 of Act 136 of 1992]

 

(11)   Where any person has acquired any property and any consideration has in terms of section 6(1)(c) been added to the consideration payable by such person in respect of such property, the value of that property shall be reduced by an amount equal to the value which constitutes consideration of any supply of such property made to the person acquiring that property, if in terms of the Value-Added Tax Act, 1991 (Act 89 of 91) –

 

(a)     value-added tax in respect of such supply has been paid or will be accounted for; or

(b)     such supply is subject to value-added tax at the rate of zero per cent.

[Subsection (11) added by section 2 of Act 20 of 1994]

Section 7 (Transfer Duty Act) – Certain payments to be excluded from the consideration payable in respect of property

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7. Certain payments excluded from the consideration payable in respect of property

There shall for the purpose of the payment of duty be excluded from the consideration payable in respect of the acquisition of any property –

(a)     transfer duty or any other duty or tax payable in respect of the acquisition of the property; and

(b)     the costs or fees payable in connection with the registration of the acquisition of the property.

Section 8 (Transfer Duty Act) – Valuation of consideration payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash

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8. Valuation of consideration payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash

 

Where the whole or any part of the consideration in respect of the acquisition of any property is payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash, the value of the consideration so payable shall, for the purpose of the payment of the duty, be –

 

(a)     where the consideration is in the form of rent, royalty, share of profits, or any other periodical payment –

(i)      if the actual amounts of the periodical payments are fixed, the aggregate of the said amounts payable over the period (including renewal periods) for which the property has been acquired by the person liable to pay the duty or, where the property acquired is a lease or sub-lease and the said aggregate amount exceeds the fair value as determined by the Commissioner mutatis mutandis in accordance with the provisions of subsection (7) of section 5 of the property which is the subject of the lease or sub-lease, such fair value;

(ii)     if the actual amounts of the periodical payments are not fixed or if the property has been acquired for an indefinite or unlimited period or for the natural life of any person, a value which the Commissioner considers fair in the circumstances;

(b)     where the consideration is in the form of goods, services, rights or privileges, the current market value of such goods, services, rights or privileges at the date of the transaction or, where the market value of such goods, services, rights or privileges as at the date of the transaction is not ascertainable, a value which the Commissioner considers fair in the circumstances;

(c)     where the consideration is in the form of shares in or other securities of a company, whether already registered or still to be registered, or is in the form of rights to acquire such shares or securities, the value of such shares or securities or rights thereto, which value shall –

(i)      in the case of shares or securities which are quoted on any recognized stock exchange on the date of the transaction, be their middle market price on that date; or

(ii)     in the case of other shares or securities or rights thereto, be a value which the Commissioner considers fair in the circumstances;

(d)     where the consideration is in the form of a member’s interest in a close corporation, whether already registered or still to be registered, such value which the Commissioner considers fair in the circumstances.

[Paragraph (d) added by section 2 of Act 81 of 1985]

Section 9 (Transfer Duty Act) – Exemptions from duty

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9. Exemptions from duty

(1)     No duty shall be payable in respect of the acquisition of property by –

(a)     the Government and a provincial administration;

[Paragraph (a) amended by section 3 of Act 77 of 1964, substituted by section 7 of Act 103 of 1969 and section 4 of Act 87 of 1988 and amended by section 36 of Act 9 of 1989]

(b)     any “municipality” as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);

[Paragraph (b) substituted by section 3 of Act 70 of 1963, section 1 of Act 81 of 1965, section 7 of Act 103 of 1969 and section 2 of Act 95 of 1978, amended by section 3 of Act 81 of 1985 and substituted by section 5 of Act 97 of 1993 and section 1 of Act 20 of 2006]

(bA)  ……….

[Paragraph (bA) inserted by section 2 of Act 89 of 1972 and deleted by section 4 of Act 126 of 1998 and section 3 of Act 30 of 2000]

(bB)  any “water services provider” as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);

[Paragraph (bB) inserted by section 3 of Act 66 of 1973 and substituted by section 2 of Act 99 of 1981, section 4 of Act 136 of 1992 and section 1 of Act 20 of 2006]

(bC)  ……….

[Paragraph (bC) inserted by section 3 of Act 66 of 1973, substituted by section 77 of Act 54 of 1976 and deleted by section 6 of Act 120 of 1992]

(c)    

(i)      a public benefit organisation contemplated in paragraph (a) of the definition of “public benefit organisation” in section 30(1) of the Income Tax Act, 1962 (Act No. 58 of 1962), that has been approved by the Commissioner in terms of section 30(3) of that Act; or

[Subparagraph (i) substituted by section 1 of Act 20 of 2006]

(ii)     any institution, board or body, which is exempt from tax in terms of section 10(1)(cA)(i) of that Act, which has as its sole or principal object the carrying on of any public benefit activity contemplated in section 30 of that Act,

in respect of property acquired by such public benefit organisation, institution, board or body, the whole, or substantially the whole, of which will be used for the purposes of one or more public benefit activity carried on by such public benefit organisation, institution, board or body, as the case may be: Provided that if at any time subsequent to the acquisition thereof it is used otherwise than in the manner contemplated in this paragraph, duty shall become payable in respect of the acquisition of that property and the date upon which that property was first so otherwise used shall for the purposes of section 3(1) and section 4 be deemed to be the date of acquisition thereof;

[Paragraph (c) substituted by section 4 of Act 87 of 1988, amended by section 2 of Act 37 of 1995 and section 3 of Act 30 of 2000, substituted by section 3 of Act 30 of 2002 and amended by section 2 of Act 32 of 2004]

(d)     any institution or body in respect of property acquired for the purpose of a public hospital, subject mutatis mutandis to the proviso to paragraph (c);

(e)     an heir or legatee in respect of –

(i)      property of the deceased acquired by ab intestato or testamentary succession or as a result of a re-distribution of the assets of a deceased estate in the process of liquidation; or

[Sub-paragraph (i) substituted by section 1 of Act 69 of 1989]

(ii)     the amount by which the value of property so acquired is enhanced by the renunciation of an interest in or restriction upon the use or disposal of such property;

(f)     ……….

[Paragraph (f) deleted by section 16 of Act 9 of 2006]

(g)     a joint owner of property in respect of the acquisition and registration in his name of a defined portion of the property allotted to him upon partition of the property, but not in respect of any consideration payable by him in order to equalize the partition or for any other reason;

(h)     a joint owner of property who acquires the sole ownership in the whole or a portion of the property, in respect of so much of the value of the property in which sole ownership is acquired as represents his share in the joint ownership of that property;

(i)      a surviving or divorced spouse who acquires the sole ownership in the whole or any portion of property registered in the name of his or her deceased or divorced spouse where that property or portion is transferred to that surviving or divorced spouse as a result of the death of his or her spouse or dissolution of their marriage or union;

[Paragraph (i) substituted by section 16 of Act 9 of 2006]

(j)      ……….

[Paragraph (j) added by section 3 of Act 86 of 1987 and deleted by section 3 of Act 30 of 2000]

(k)     a spouse in a marriage in community of property in respect of the acquisition of an undivided half-share in property by operation of law by virtue of the contraction of such marriage, if such property had been acquired by the other spouse prior to the date of contraction of the marriage.

[Paragraph (k) added by section 1 of Act 69 of 1989]

(l)      any company in terms of-

(i)      an asset-for-share transaction as defined in section 42 of the Income Tax Act, 1962 (Act No. 58 of 1962);

(iA)   a substitutive share-for-share transaction as defined in section 43 of the Income Tax Act, 1962 (Act No. 58 of 1962);

(iB)   an amalgamation transaction as defined in section 44 of the Income Tax Act, 1962 (Act No. 58 of 1962);

(ii)     an intra-group transaction as defined in section 45 of the Income Tax Act, 1962 (Act No. 58 of 1962);

(iii)    a liquidation distribution as defined in section 47 of the Income Tax Act, 1962 (Act No. 58 of 1962); or

(iv)    a transaction which would have constituted a transaction or distribution contemplated in subparagraphs (i) to (iii) regardless of whether that company acquired that property as a capital asset or as trading stock,

[Subparagraph (iv) substituted by section 1 of Act 20 of 2021]

where the public officer of that company has made a sworn affidavit or solemn declaration that such acquisition of property complies with the provisions of this paragraph;

[Paragraph (l) added by section 8 of Act 60 of 2001, substituted by section 4 of Act 74 of 2002 and section 3 of Act 45 of 2003, amended by section 3 of Act 17 of 2009 and  section 3 of Act 7 of 2010 and substituted by section 2 of Act 31 of 2013 effective on 1 January 2013]

(m)    any person in respect of the transfer of a property from a superannuation fund created and operated mainly for employees of the former TBVC and self-governing territories and other similar funds into the Govern­ment Employees’ Pension Fund.

[Paragraph (m) added by section 2 of Act 31 of 2005]

(n)     any person to whom the Minister of Land Affairs has made available state land administered or controlled by him or her in terms of the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993), or section 42E of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994);

[Paragraph (n) added by section 1 of Act 60 of 2008 with effect from 31 October 2009]

(o)     any person in respect of so much of the value of the property as does not exceed an amount equal to any advance or subsidy granted to that person in terms of the Provision of Land and Assistance Act, 1993 (Act No. 126 of 1993), for the purposes of that acquisition.

[Paragraph (o) added by section 1 of Act 60 of 2008 with effect from 31 October 2009]

(1A)  No duty shall be payable in respect of the registration of any property transferred by any public benefit organisation contemplated in paragraph (a) of the definition of “public benefit organisation” in section 30(1) of the Income Tax Act, 1962 (Act No. 58 of 1962), that has been approved by the Commissioner in terms of section 30(3) of that Act to any other entity which is controlled by that public benefit organisation;

[Subsection (1A) inserted by section 3 of Act 30 of 2000 and substituted by section 1 of Act 20 of 2006]

(2)     No duty shall be payable by a person who requires his ownership in property to be registered in his name in a deeds registry under any of the following circumstances:

(i)      where there has been an error in the registration of the acquisition of the property, provided the duty payable in respect of that acquisition has been duly paid;

(ii)     ……….

[Paragraph (ii) deleted by section 2 of Act 32 of 2004]

(3)     No duty shall be payable in respect of the registration jointly in the names of partners of any property which is registered in the name of the partnership carried on by such partners.

(4)     No duty shall be payable –

(a)     in respect of a change in the registration of property required as a result of the termination of the appointment of an administrator of a trust under a will or other written instrument or of a trustee of an insolvent estate; or

(b)     where trust property is transferred by the administrator of a trust in pursuance of the will or other written instrument in pursuance of which the administrator was appointed –

(i)      to the persons entitled thereto under such will; or

(ii)     to a relative as contemplated in the definition of “relative” in section 1 of the Estate Duty Act, 1955 (Act No. 45 of 1955), where the trust was founded in terms of such other written instrument by a natural person for the benefit of such relative: Provided that no consideration is paid directly or indirectly by such relative in respect of the acquisition of such trust property; or

[Paragraph (b) substituted by section 4 of Act 87 of 1988]

(c)     where property is restored by a trustee of an insolvent estate to the insolvent; or

(d)     in respect of the registration of trust property in the name of a trustee in his capacity as trustee if such trust property is held by such trustee as trust property at the date of commencement of the Trust Property Control Act, 1988, and such registration is required in terms of section 11 (2) of the said Act.

[Paragraph (d) deleted by section 3 of Act 31 of 1953 and added by section 4 of Act 87 of 1988]

(5)     ……….

[Subsection (5) amended by section 12 of Act 80 of 1959, section 3 of Act 77 of 1964, section 7 of Act 103 of 1969 and section 4 of Act 87 of 1988 and deleted by section 4 of Act 136 of 1992]

(6)    

(a)     No duty shall be payable by a person who, as surety for the payment of the consideration payable under a transaction, pays the consideration and seeks transfer of the property in question into his own name, provided –

(i)      the duty has been paid in respect of the acquisition of the property under the transaction; and

(ii)     no further consideration is payable by the surety to either party to the transaction.

(b)     If further consideration is payable by a surety referred to in paragraph (a) to either party to the transaction, duty shall be payable by him on the value of that further consideration.

(7)     No duty shall be payable in respect of the acquisition of property by way of a transaction, if the transaction –

(a)     is declared void by a competent court;

(b)     in terms of which the property is acquired from a person whose estate is sequestrated subsequent to the date of the transaction, becomes void by reason of the sequestration;

(c)     in terms of which property is acquired by a person whose estate is sequestrated prior to the registration of the acquisition by him of the property, is abandoned by the trustee of his insolvent estate;

(d)     is a transaction whereby portions of adjoining properties which are being worked or about to be worked for minerals and are held under claim licence, mynpacht or other mining title, are exchanged, provided the Government Mining Engineer issues a certificate stating that the exchange is made solely and bona fide for mining purposes and is necessary or instrumental to proper or more economic working: Provided that if any additional consideration is payable by either party to the exchange, duty shall be payable on the value of the additional consideration.

(8)     No duty shall be payable in respect of the acquisition on or after the sixteenth day of March, 1964, of property by any company (hereinafter referred to as the subsidiary company) which has been incorporated, and is managed and controlled, in the Republic from any other company (hereinafter referred to as the foreign company) which has been incorporated, and is managed and controlled, outside the Republic if it is proved to the satisfaction of the Commissioner –

(a)     that at the time of such acquisition all the issued shares of the subsidiary company were held for its own benefit by the foreign company or a company which was incorporated, managed and controlled outside the Republic and was controlled by or controlled the foreign company; and

(b)     that the subsidiary company has under an arrangement with the foreign company acquired from the foreign company all the assets, including the said property, relating to any industrial or commercial or other business undertaking of the foreign company in the Republic.

[Subsection (8) added by section 3 of Act 77 of 1964 and substituted by section 1 of Act 81 of 1965 and section 5 of Act 88 of 1974]

(9)     If any property has by expropriation or compulsory sale under any law been acquired by the State (including the South African Transport Services and a provincial administration) or any rural council, municipal council, town council, village council, town board, local board, village management board, health committee or any district council or any board, body or institution of a public character established by law, and such property is, upon the cancellation or variation on or after 1 January 1964, of such expropriation or sale, re-acquired by the person from whom such property was expropriated or by whom such property was sold under such sale, no duty shall be payable in respect of such re-acquisition.

[Subsection (9) added by section 1 of Act 81 of 1965 and substituted by section 7 of Act 103 of 1969, section 4 of Act 87 of 1988 and section 5 of Act 97 of 1993]

(10)   ……….

[Subsection (10) added by section 7 of Act 103 of 1969 and deleted by section 4 of Act 87 of 1988]

(11)   ……….   

[Subsection (11) added by section 2 of Act 95 of 1978, amended by section 4 of Act 87 of 1988 and deleted by section 3 of Act 30 of 2002]

(12)   ……….

[Subsection (12) added by section 6 of Act 106 of 1980, amended by section 4 of Act 87 of 1988 and deleted by section 3 of Act 30 of 2002]

(13)   ……….

[Subsection (13) added by section 2 of Act 118 of 1984, substituted by section 4 of Act 136 of 1992 and deleted by section 3 of Act 30 of 2000]

(14)   ……….

[Subsection (14) added by section 1 of Act 69 of 1989 and deleted by section 3 of Act 30 of 2000]

(15)   No duty shall be payable in respect of the acquisition of any property under any transaction which for purposes of the Value-Added Tax Act, 1991, is a taxable supply of goods to the person acquiring such property if –

(a)     the transferor of the property under such transaction, in a declaration in such form as the Commissioner may prescribe, certifies that value-added tax payable under the said Act has been paid to him in respect of the said supply by the transferee and has been accounted for by him in a relevant return required to be furnished by him under the said Act or will be so accounted for in such return within the time allowed under that Act for the rendering of such return, or where such supply was subject to the said tax at the rate of zero per cent, such information regarding such supply as the Commissioner may require has been furnished to him;

(b)     any security required by the Commissioner for the payment of such tax has been lodged, if such tax has not yet been paid; and

(c)     the Commissioner has issued a certificate to the effect that the requirements of this subsection for the granting of the exemption have been met.

[Subsection (15) added by section 79 of Act 89 of 1991]

(15A) No duty shall be payable in respect of the acquisition of any property under an asset-for-share transaction as contemplated in section 42 of the Income Tax Act, 1962 (Act No. 58 of 1962), where –

(a)     the supplier and recipient of that property are deemed to be one and the same person in terms of section 8(25) of the Value-Added Tax Act, 1991; and

(b)     the public officer of the company as contemplated in section 101 of the Income Tax Act, 1962, has made a sworn affidavit or solemn declaration that such acquisition of property complies with the provisions of paragraph (a).

[Subsection (15A) inserted by section 2 of Act 31 of 2005 and amended by section 2 of Act 35 of 2007]

(15B) No duty shall be payable in respect of the acquisition of property operated and managed by a person on behalf of a rental pool scheme as contemplated in section 52(2) of the Value-Added Tax Act, 1991, where the person acquiring that property elects in writing that that property must continue to be operated and managed by that person on behalf of a rental pool scheme.

[Subsection (15B) inserted by section 2 of Act 35 of 2007]

(16)   ……….

[Subsection (16) added by section 2 of Act 5 of 2001 and deleted by section 2 of Act 31 of 2005]

(17)   ……….

[Subsection (17) added by section 2 of Act 5 of 2001 and deleted by section 2 of Act 31 of 2005]

(18)   No duty shall be payable where-

(a)     any old order right or OP26 right as defined in Schedule II of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), wholly or partially continues in force or is wholly or partially converted into a new right pursuant to that Schedule; or

(b)     any prospecting right, mining right, exploration right, production right, mining permit, retention permit or reconnaissance permit as defined in section 1 of the Mineral and Petroleum Resources Development Act, 2002, or any reconnaissance permission contemplated in section 14 of that Act, is granted or is wholly or partially renewed in terms of that Act.

[Paragraph (b) substituted by section 2 of Act 16 of 2004]

[Subsection (18) inserted by section 3 of Act 45 of 2003]

(19)   No duty shall be payable by a person-

(a)     in respect of any transaction contemplated in Item 8 of Schedule 1 to the Share Blocks Control Act, 1980 (Act No. 59 of 1980), in terms of which any right to or interest in the use of immovable property conferred by reason of the ownership of a share held by that person in a share block company as defined in section 1 of that Act is converted to ownership by that person of that immovable property; or

(b)     in respect of the acquisition by that person of a part of the immovable property of a share block company as defined in section 1 of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), where that person had a right of use of that part, which right was conferred by reason of the ownership of a share held by that person in that share block company.

[Subsection (19) inserted by section 3 of Act 45 of 2003 and substituted by section 1 of Act 22 of 2012 effective on 1 January 2013]

(20)   No duty shall be payable in respect of any acquisition of any interest in a residence as contemplated in paragraph 51 or 51A of the Eighth Schedule to the Income Tax Act, 1962 (Act No. 58 of 1962), where that acquisition takes place as a result of a transfer or disposal contemplated in either of those paragraphs.

[Subsection (20) added by section 3 of Act 17 of 2009 and substituted by section 3 of Act 7 of 2010 effective on 1 October 2010]