2.  Imposition of tax

 

(1)     There must be levied and paid for the benefit of the National Revenue Fund a tax, to be known as the securities transfer tax, in respect of-

 

(a)        every transfer of any security issued by-

(i)      a close corporation or company incorporated, established or formed inside the Republic; or

(ii)     a company incorporated, established or formed outside the Repub­lic and listed on an exchange; and

(b)     any reallocation of securities from a member’s bank restricted stock account or a member’s unrestricted and security restricted stock account to a member’s general restricted stock account,

at the rate of 0,25 per cent of the taxable amount of that security determined in terms of this Act.

[Subsection (1) substituted by section 154 of Act 22 of 2012 effective on 1 January 2013]

 

(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 the date mentioned in that announcement-

 

(a)     the rate of securities transfer tax referred to in subsection (1) is altered to the extent mentioned in the announcement; or

(b)     there is a change in the provisions of this Act to the effect that the transfer of any security is no longer subjected to securities transfer tax.

[Subsection (2) substituted by section 91 of Act 15 of 2016 effective on19 January 2017]

 

(3)     If the Minister makes an announcement referred to in subsection (2), that alteration comes into effect on the date announced 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) substituted by section 60 of Act 18 of 2009 and section 91 of Act 15 of 2016 effective on19 January 2017]