Overview of Recent Amendments of Transfer and Stamp Duties

Transfer Duties

Transfer duties are governed by the Transfer Duty Act 14 of 1993 and were recently amended through the Transfer Duty Amendment Act 6 of 2024, which took effect on 1 October 2024. The term "property" now includes land, any fixtures, real rights in land, rights to mine for minerals, and shares in companies, close corporations, or trusts that own residential properties. Residential property refers to dwelling houses, holiday homes, apartments, or land zoned for residential use, but excludes agricultural land, business-zoned land, hotels, guesthouses, or structures rented to five or more related persons. For natural persons, a new progressive transfer duty rate structure applies, while for companies, close corporations, and trusts, the 12% rate remains unchanged. Transfer duties must be paid within six months from the acquisition date, which is defined as the date of transaction or the date when entitlement is gained.

Stamp Duties

stamp duties are governed by the Stamp Duties Act 15 of 1993, with amendments introduced through the Stamp Duties Amendment Act 7 of 2024 effective 1 October 2024. A notable change is the inclusion of electronic stamping. For natural persons, stamp duties are exempt for lower-value properties, with a nominal rate applied to higher values. For companies, close corporations, and trusts, the standard duty rate remains unchanged. The updated stamp duty rates apply to all relevant documents executed after 1 October 2024.