AF - 2020

Author: STBB
26 February 2020

Wednesday, 26 February 2020

Minister of Finance, Mr Tito Mboweni, delivered the National Treasury’s budget for 2020/2021 this afternoon. The following amendments stand out:

  • Above inflation adjustment to personal income tax brackets. (This was not done last year)
  • Transfer Duty exemption increased to R1 million.
  • Inflationary adjustment to transfer duty rates.
  • Allowable increase to tax free savings increased from R33,000 to R36,000.
  • Sunset clauses in respect of certain corporate incentives.
  • Limitation placed on use of assessed losses.
  • General fuel levy increases by 16 cents per litre on 1 April 2020.
  • Increased excise duties on tobacco and alcohol.
  • Plastic bag levy increases to 25 cents per bag.

Transfer Duty rates effective from 1 March 2020 are as follows:

Value of property Rate
Up to R 1 000 000 0%
R1 000 001 – R1 375 000 3% of the value above R1 000 000
ie:  R 357 000 @ 3% =                                               R 11 250.00
R1 375 001 – R1 925 000 R11 250 + 6% of the value above R 1 375 000
ie:  R 550 000 @ 6% =                                               R 33 000.00
R1 925 001 – R2 475 000 R44 250 + 8% of the value above R 1 925 000
ie:  R 550 000 @ 8% =                                              R 44 000.00
R2 475 001 – R11 000 000 R88 250 +11% of the value above R2 475 000
ie:  R 8 525 000 @ 11% =                                        R 937 750.00
                                                            total:        R 1 026 000.00
R11 000 001 and above R1 026 000 + 13% of the value exceeding
R11 000 000

*  This will be effective for all Offers to Purchase signed from:  1 March 2020
It means that purchasers of properties for R 1 000 000 or less, will now pay NO transfer duty

For more information contact your attorney at STBB