Tag: transfer duty

When we think about estate planning, we think of a plan outlining a tax-efficient way to deal with our assets when we pass away. Instead of viewing this as a ‘death plan’, try to think of it as a ‘life plan’ – a strategy created during your lifetime to ensure that your wishes are fulfilled, and that your loved ones benefit as intended after you pass away.

Despite South Africa’s political turmoil and energy crisis, there is still significant interest from international property buyers who are drawn by the country’s inimitable lifestyle and the fact that that they can get considerably more bang for their buck here than in comparable areas abroad.

An increase in the Value Added Tax (VAT) rate to 15% will came into effect on 1 April 2018. Generally, the sale of residential property is subject to transfer duty, however, if a seller is a VAT vendor, such as a property developer, VAT may be payable. How will the VAT increase effect the sale of residential property, where a property is purchased before 1 April but transfer only occurs after the date of the increase?