“bank restricted stock account” means a bank restricted stock account as defined in the exchange rules;
[Definition of “bank restricted stock account” inserted by section 153 of Act 22 of 2012 effective on 1 January 2013]
Section 12 (STT Act) – Short title and commencement
12. Short title and commencement
This Act is called the Securities Transfer Tax Act, 2007, and comes into operation on 1 July 2008.
Securities Transfer Tax Act Citation
Reproduced under Goverment Printer’s Authorisation (Authorisation No. 11817) dated 30 August 2019.
Please remember to periodically “Check for Updates”!
SECURITIES TRANSFER TAX ACT 25 OF 2007
(English text signed by the President)
[Assented to: 21 December 2007]
[Commencement date: 1 July 2008]
as amended by:
Taxation Laws Amendment Act 3 of 2008
Revenue Laws Amendment Act 60 of 2008
Taxation Laws Amendment Act 17 of 2009
Taxation Laws Second Amendment Act 18 of 2009
Taxation Laws Amendment Act 7 of 2010
Taxation Laws Amendment Act 24 of 2011
Taxation Laws Amendment Act 22 of 2012
Taxation Laws Amendment Act 31 of 2013
Tax Administration Laws Amendment Act 39 of 2013
Taxation Laws Amendment Act 43 of 2014
Taxation Laws Amendment Act 25 of 2015
Taxation Laws Amendment Act 15 of 2016
Taxation Laws Amendment Act 17 of 2017
Taxation Laws Amendment Act 23 of 2020
Taxation Laws Amendment Act 20 of 2021
Taxation Laws Amendment Act 42 of 2024
To report an issue, please contact us at service@hApp-e-tax.co.za
ACT
To provide for the levying of a securities transfer tax in respect of every transfer of any security; and to provide for matters connected therewith.
BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:-
ARRANGEMENT OF SECTIONS (STT Act)
ARRANGEMENT OF SECTIONS
Section 3 – Purchase of listed securities through or from member
Section 4 – Transfer of listed securities effected by participant
Section 5 – Other transfers of listed securities
Section 6 – Transfer of unlisted securities
Section 7 – Tax recoverable from person to whom security is transferred
Section 8A – Sharia compliant financing arrangements
Section 9 – Schemes for obtaining undue tax benefits
ARRANGEMENT OF SECTIONS (TDA)
ARRANGEMENT OF SECTIONS
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 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 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 1 (Transfer Duty Act) – Definitions
1. Definitions
(1) In this Act, unless the context otherwise indicates –
Section 2 (Transfer Duty Act) – Imposition of transfer duty
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 210 000;
[Subparagraph (i) substituted by section 2(1) of Act 14 of 2017, by section 1(1) of Act 22 of 2020, by section 1(1) of Act 19 of 2023 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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 210 000 but does not exceed R1 663 800;
[Subparagraph (ii) substituted by section 2(1) of Act 14 of 2017, by section 1(1) of Act 22 of 2020, by section 1(1) of Act 19 of 2023 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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 663 800 but does not exceed R2 329 300;
[Subparagraph (iii) substituted by section 1(1) of Act 22 of 2020, by section 1(1) of Act 19 of 2023 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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 329 300 but does not exceed R2 994 800;
[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 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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 994 800 but does not exceed R13 310 000; and
[Subparagraph (v) substituted by section 2(1)(b) of Act 13 of 2016, by section 1(1) of Act 22 of 2020, by section 1(1) of Act 19 of 2023 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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 R13 310 000.
[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. 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 and by section 1(1) of Act 3 of 2026 deemed effective on 1 April, 2025 and applicable in respect of property acquired or 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]
(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
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
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
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]