BUDGET 2017/2018

Home / Blog / Business / BUDGET 2017/2018
February 24, 2017
Business

Budget_0

BUDGET 2017/2018

Minister Pravin Gordhan’s Budget Speech on Wednesday 22 February 2017 saw slight tax relief for property transfers, as the Transfer Duty threshold has been raised to R900 000 from the current R750 000.

The new rates will be applicable to Sale Agreements signed as from the 1st of March 2017.

Below is the new and old Transfer Duty tables, as taken from SARS’s website:

2018 (1 March 2017 – 28 February 2018)

 

Value of the property (R)Rate
0 – 900 0000%
900 001 – 1 250 0003% of the value above R900 000
1 250 001 – 1 750 000R10 500 + 6% of the value above R 1 250 000
1 750 001 – 2 250 000R40 500 + 8% of the value above R 1 750 000
2 250 001 – 10 000 000R80 500 +11% of the value above R2 250 000
10 000 001 and aboveR933 000 + 13% of the value above R10 000 000

2017 (1 March 2016 – 28 February 2017)

Value of the property (R)Rate
0 – 750 0000%
750 001 – 1 250 0003% of the value above R750 000
1 250 001 – 1 750 000R15 000 + 6% of the value above R 1 250 000
1 750 001 – 2 250 000R45 000 + 8% of the value above R 1 750 000
2 250 001 – 10 000 000R85 000 +11% of the value exceeding R2 250 000
10 000 001 and aboveR937 500 +13% of the value exceeding R10 000 000

The maximum effective rate of Capital Gains tax has also been increased:

Legal entity20162017
Individuals and special trusts16.4%18%
Companies22.4%22.4%
Other trusts32.8%36%

Other changes include the raising of the provisional tax which is withheld on behalf of non-resident sellers of immovable property in South Africa which is set off against the normal tax liability of the non-residents. The tax to be withheld from payments to the non-residents selling the immovable property is at a rate of:

  • 5% (previously 5%) for a non-resident individual
  • 10% (previously 7.5%) for a non-resident company
  • 15% (previously 10%) for a non-resident trust

Further details on the new budget can be found at https://www.sars.gov.za/About/SATaxSystem/Page3/Bdget-Seches.asqx