Page 37 - Profmark BSA Guide 2025

Transfer Duty
■ Calculated on the value of immovable property
■ Payable within six months after the transaction is entered into
■ Exemptions apply with the most notable when the seller is a VAT vendor
■ Where a VAT vendor purchases property from a non-vendor, the notional input
tax is calculated by multiplying the tax fraction (15/115) by the lesser of the
consideration paid or market value
■ The acquisition of a contingent right in a trust that holds a residential property or
the shares in a company or the member’s interest in a close corporation, which
owns residential property, comprising more than 50% of its assets, is subject to
transfer duty at the applicable rate

Transfer duty is calculated as follows:
R1 – R1 210 000 0%
R1 210 001 – R1 663 800 3% of the value above R1 210 000
R1 663 801 – R2 329 300 R13 614 + 6% of the value above R 1 663 800
R2 329 301 – R2 994 800 R53 544 + 8% of the value above R 2 329 300
R2 994 801 – R13 310 000 06 784 +11% of the value above R2 994 800
R13 310 001 + R1 241 456 + 13% of the value over R13 310 000

Headquarter Company Regime
The headquarter company regime (HQC) aims to reduce the tax cost of operating a
headquarter company in SA. For example, it exempts companies from withholding
dividends tax and tax on interest and royalties on income flowing through them from
foreign subsidiaries.
Value Added Tax (VAT)
The VAT system comprises of three types of supplies:
■ Standard-rated supplies – supplies of goods and services subject to the VAT rate
in force at the time of supply. The current vat rate is 15%.
■ Exempt supplies – supplies of certain services not subject to VAT. Vendors making
exempt supplies are not entitled to input VAT credits

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