Transfer Duty

No Amendments / Changes on Transfer Duty Receipts 

The South African Revenue Services (‘SARS”) has announced that the payment of transfer duty with regard to the acquisition of property is based on specific laid down requirements which influence the amount of duty to be paid and/or whether any penalty (additional tax) is payable as a result of non-adherence to such requirements. 

The practice of amending Transfer Duty Receipts is, as a result of the above, a major cause of concern for audits by the Auditor-General. 

As a consequence, SARS will no longer effect any manual amendments/changes to Transfer Duty Receipts. 

Information that must appear in Transfer Duty Receipts 

SARS has indicated the following is information that must appear in a Transfer Duty Receipt: 

  • Full name and identity / registration number of the parties. 
  • Date of transaction. 
  • Purchase price, if property was sold. 
  • Property description (property in a sectional title scheme must be described by referring to the number of the section, name of the scheme, and the sectional plan number. No reference need be made to the undivided share in the common property. The exclusive use area must be described by referring to the exclusive use area, for instance G10, name of the scheme, and the sectional plan number). 

Errors in Transfer Duty Receipts 

Transfer Duty Receipts will not be accepted on which errors of the following nature occur: 

Where a clear difference between a name / identity number / registration number cited in other documents (i.e. power of attorney) and the Transfer Duty Receipts exist; 

Errors in the property description. Citing incorrect Erf numbers or the names of places, e.g. Erf 345 instead of Erf 435, and Erf 345 Athlone instead of Erf 345 Cape Town, must not be accepted.

Errors with regard to the incorrect portion, e.g. portion 1 instead of portion 11 or the remainder of a portion 1, etc. must not be accepted; 

Omitting to refer to a personal servitude, e.g. usufruct etc; 

The date of the transaction must be correct; 

The purchase price on the Transfer Duty Receipt must tally with the purchase price referred to in the power of attorney; 

Deposit Transfer Duty Receipts must not be accepted for registration purposes. A Transfer Duty Receipt on which the word “Deposit” has been deleted, must not be accepted as a valid Transfer Duty Receipt. 

A certificate by a conveyancer stating the correct position must be accepted with regard to Transfer Duty Receipts on which errors of the following nature occur: 

  • where minor errors in the spelling of names i.e. Louww instead of Louw or Gustaf instead of Gustaff, etc. have been made; 
  • differences with regard to the last seven digits in an identity number; 
  • where minor errors in the spelling of a township / farm / scheme name, etc. have been made; 
  • where incorrect or no reference has been made to the extension of a township, e.g. Nelspruit extension 2 (or Nelspruit) instead of Nelspruit extension 12; 
  • where incorrect or no reference has been made to the registration division of a farm / agricultural holding; 
  • where incorrect or no reference has been made to the extent of a property. 

The above should be a clear indicator to all practitioners as to when a conveyancer’s certificate will be acceptable and when a new TDR needs to be procured. 

Should you require more assistance, please do not hesitate to contact us. 

Allen West
TONKIN CLACEY PRETORIA 
012 346 1278

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