Page 37 - Nexia SAB&T Business in South Africa Guide 2024

Transfer Duty
■ Is calculated on the value of the immovable property (purchase price or
market value whichever is the highest), and is payable within six months after
the transaction is entered into.
■ Will be exempted when the seller is a registered VAT vendor.
Transfer duty is calculated as follows:
R1 – R1 100 000 0%
R1 100 001 – R1 512 500 3% of the value over R1 100 000
R1 512 501 – R2 117 500 R12 375 + 6% of the value over R1 512 500
R2 117 501 – R2 722 500 R48 675 + 8% of the value over R2 117 500
R2 722 501 – R12 100 000 R97 075 + 11% of the value over R2 722 500
R12 100 001 + R1 128 600 + 13% of the value over R12 100 000

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. With effect 1 April 2018 the VAT rate was
increased from 14% to 15%.
■ Exempt supplies – supplies of certain services not subject to VAT. Vendors
making exempt supplies are not entitled to input VAT credits.
■ Zero-rated supplies – supplies of certain goods or services subject to VAT at
zero percent. Vendors making zero-rated supplies are entitled to input VAT
credits.

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