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2017-2018 Budget speech summary of taxes applicable to property law

Transfer Duty payable on purchase price

R0                  – R    900 000        0%    900 001 – R 1 250 000        3% on the value from R900 001 to R1250 000

R 1 250 001 – R  1 750 000        flat rate of R10 500 plus 6% on the value from

R1 250 001 to R1 750 000

R 1 750 001 – R  2 250 000        flat rate of R40 500 plus 8% on the value from

R1 750 0001 to R2 250 000

R 2 250 001 – R10 000 000       flat rate of R80 500 plus 11% on the value

from R2 250 000 to 10 000 000

R10 000 001 and above             flat rate of R933 000 plus 13% on the value

above R10 000 000

New Capital Gains Tax rate

Capital Gains Tax (CGT) has increased as follows:- for individuals and special trusts – 18%,

for companies – 22.4%; and for other trusts – 36%.

Donations Tax

Donations Tax stays unchanged and continues to be levied at a flat rate of 20% on the value of the property donated. Current exemptions (i.e. the first R100 000 of property donated by an individual and in the event of a company/trust, casual gifts not exceeding R10 000 per annum) remain the same.

Estate Duty

Estate Duty also stays unchanged and is levied at a flat rate of 20% on the property of residents and non-residents who have property in South Africa. The basic rebate of R3 500 000 on the net value of the estate stays the same.