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]