Stamp duties on property leases scrapped
28 October 2008

The ambit of the Stamp Duties Act which was introduced in 1968, has been steadily reduced over the last few years. Stamp duty only remains payable on leases of immovable property for periods longer than five years. Stamp duty that was previously payable on unlisted marketable securities in terms of the Stamp Duties Act, is now payable in terms of the Securities Transfer Tax Act, 2007.

The minister of finance announced in his budget review in February 2008 that he is considering the outright repeal of the remaining aspects of stamp duty in order to simplify administration and compliance. He did, however, express concern that the repeal of the Stamp Duties Act may lead to the undermining of transfer duty, and that the South African Revenue Service (Sars) was considering whether transfer duty should be legislatively applied to long-term leases. Read more...

Gerhard Badenhorst, www.moneywebtax.co.za