Transfer duty is a tax levied on the acquisition of property. The purchaser is liable to pay transfer duty and it is calculated on a sliding scale determined by value of the property.
Transfer duty is payable to SARS within six months from the date of acquisition (signature of the agreement). SARS is entitled to claim penalty interest should the transfer duty not be paid timeously, regardless of when registration of the transaction takes place. This interest is calculated at a rate of 10% per annum for each completed month on the transfer duty amount due. A completed month is calculated as the first day from the expiry of the initial 6-month period to the date of payment.
Transfer duty is only payable where the value of the property is above R 1 100 000. A purchaser will not pay transfer duty in transactions where VAT is applicable.