Friday, May 21, 2010

Stamp Duty Act

I was recently asked again about stamp duties. In case you missed the previous media releases, the Stamp Duty Act was abolished on the 31 March 2009.

This means that no lease of any duration or rent value requires stamp duty. Please click on the SARS link to view the SARS website, where further media releases are available:

http://www.sars.gov.za/home.asp?pid=191

Media Releases 2009

SARS announces abolition of Stamp Duty

Abolition of Stamp Duty from 1 April 2009

PRETORIA 31 March 2009 – The South African Revenue Service is pleased to announce the abolition of the Stamp Duty Act (77 of 1968) with effect from midnight on 31 March 2009. The abolition forms part of the on-going efforts to reduce the administrative burden on taxpayers and to simplify the tax system.

The scrapping of the Act follows the whittling down of the scope of stamp duties over the past few years until only property leases of over five years required stamp duties to be paid. This is now done away with from 1 April 2009.

The scrapping of the Act is, however, not retrospective and taxpayers remain liable for stamp duties due up to 31 march 2009 and any outstanding stamp duties must still be paid.

Adhesive revenue stamps will only be demonetorized from 1 November 2009 to allow time for other government departments which utilize these to introduce alternative measures. After that date they may not be used for any purpose.

Holders of existing stocks of revenue stamps have until 31 October 2010 to claim a refund for the stamps from their nearest SARS branch.

Revenue franking machines will also be finally scrapped on 1 November 2009 and any value remaining on these machines can be refunded until 31 October 2010 at a SARS branch.

ENDS

1 comment:

  1. I think already it's having a huge impact on the number of first-time buyers coming into the market..............
    Stamp Duty

    ReplyDelete