Page 3 - Nexia SAB&T Property & Tax Guide 2022

CONTENTS

Budget Highlights . . . . . . . . . . . . . . . . . . . . . . 2 Sectional Title and Community Schemes . . . . 30
Normal Rates of Tax Payable by Natural Costs of Buying & Selling Property . . . . . . . . . 36
Persons: 2021, 2022, 2023 . . . . . . . . . . . 3 Purchasing via Legal Entities –
Transfer Duty on Immovable Property . . . . . . . . 5 Pro’s & Con’s . . . . . . . . . . . . . . . . . . . . . . 38
Capital Gains Tax & Your Property. . . . . . . . . . . 6 Exchange Control . . . . . . . . . . . . . . . . . . . . . . 39
The Deed of Sale . . . . . . . . . . . . . . . . . . . . . . 10 Deceased Estates and Immovable Property . . 40
Home Loans and Mortgage Bonds . . . . . . . . . 15 Trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
The Consumer Protection Act . . . . . . . . . . . . . 17 Donations Tax . . . . . . . . . . . . . . . . . . . . . . . . 47
The Property Practitioners Act . . . . . . . . . . . . . 22 Estate Duty . . . . . . . . . . . . . . . . . . . . . . . . . . 48
The Protection of Personal Information Act . . . 25 Mortgage Bond Repayment Factors . . . . . . . . 49
Tax Implications on the Leasing of Property. . . 26 Sale of Property Timeline . . . . . . . . . . . . . . . . 50
The Rental Housing Act . . . . . . . . . . . . . . . . . 27 Pitfalls & Recommendations . . . . . . . . . . . . . 51
Force Majeure and Property . . . . . . . . . . . . . . 28 Comparative Tax Rates. . . . . . . . . . . . . . . . . . 52
The Electronic Deeds Registration Value-added Tax (VAT) . . . . . . . . . . . . . . . . . . 53
Systems Act . . . . . . . . . . . . . . . . . . . . . . . 29 Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . 54
Regulations for New Buildings and Illustrative Table of Bond and
Energy Usage . . . . . . . . . . . . . . . . . . . . . . 29 Transfer Costs . . . . . . . . . . . . . . . . . . . . . 55

IMPORTANT NOTE AND DISCLAIMER

This guide is an easy reference, pocket-sized overview of the South African Tax System and immovable
property in South Africa, incorporating announcements made in the Budget delivered on 23 February 2022.
◆ The information contained in this guide is a summary of current legislation, budget proposals
and property related information. Due to limitations in length, only key points on each topic
are addressed. Words importing the masculine shall include a reference to the feminine and
vice versa.
◆ We suggest that you do not act solely on material contained in this guide as the nature of
the information contained herein is general, and in summarised format, and may in certain
circumstances be subject to misinterpretation. In addition, the budget proposals may not include
all legislative adjustments which could be made in the near future. The information is provided
with the understanding that no legal or professional advice is being rendered in this guide. We
recommend that our advice be sought when encountering these potentially problematic areas.
◆ While every care has been taken in the compilation of this guide, no responsibility of any nature
whatsoever will be accepted for any inaccuracies, errors, or omissions.
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