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The Minister of Finance announced a change in the rate of Transfer Duty in his budget speech.

Sales affected

All sales of properties to a natural person will benefit from the lower rates. Sales to companies, closed corporations and trusts will have the same transfer duty tax structure as a natural person.

Property ValueRates of Tax
R0 - R600 000 0%
R600 001 - R1 000 0003% above R600 001 
R1 000 001 to R1 500 000R12 000 plus 5%
R1 500 001 and aboveR37 000 plus 8%

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Transfer Duty Calculator

Find out how much transfer duty you will have to pay when purchasing a property. Use our calculator to see how much you will have to pay.

Property ValueR
Transfer Duty FeeR


Capital Gains tax

Will the sale of my primary residence be subject to CGT?

A primary residence exclusion of a gain of up to R1 500 000.00 of profit or gain on the original purchase price of the property. Any amount over and above will be suject to CGT.

What are affected capital assets?

Affected capital assets are considered to be property of any kind, including assets that are movable or immovable, tangible or intangible, excluding trading stock and mining assets qualifying for an income tax deduction as capital expenditure.

Is there any relief on the inclusion of a capital gain in taxable income?

The following inclusion rates are to be applied to nett capital gains:-
  • Legal persons (including companies, close corporations and trusts) - 50%
  • Natural persons (individuals and special trusts) - 25%
In other words, a company will only include fifty percent of the nett capital gain in taxable income (fifty percent is exempt from tax) and an individual will only include twenty five percent of the nett capital gain in taxable income (seventy five percent is exempt from tax).

TAX PAYER INCLUSION RATE STATUTORY TAX RATE EFFECTIVE TAX RATE

Tax Payer Inclusion Rate Statutory Tax Rate Effective Tax Rate
Individuals25%0 - 40%0 - 10%
Companies (standard)50%29%14,5%
Trusts50%40%20%

We wish to point out that this is a very brief discussion regarding the effects of CGT on the property market. This should not be deemed to be an extensive and fully detailed guide, and should only be utilized as a guideline.

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