If your property is registered in a Close Corporation, Company or a TRUST, an amnesty has been granted to permit the property being transferred into private names.
This amnesty has given by South African Revenue Services as an incentive to encourage property ownership in private names.
The Qualifying Factors :
- Owners must have mainly been resident in the property from the 11th February 2009
- You, alone or together with your spouse, must have directly held all the Share Capital or Member’s interest from the 11th February 2009;
- "Connected people" can also receive transfer of ownership
- The property transfer must be registered no later than 31st December 2012.
The Benefit :
If the property remains in the Company or CC, you could be subjected to the following un-necessary taxes:
- Capital Gains Tax at effectively 14 % for companies and CC's (Trusts 20 %); and not 10 % when owned by individuals;
- Double Capital Gains Tax (CGT) on the shares and property. If the shareholder dies and the property is still owned by the company, the transfer from the company, as well as the transfer of the shares will both attract (CGT).
- STC Dividends Tax of 10 % on receiving your selling price through the company or CC;
- CIPRO annual charges on CC’s and Companies.
- You will not benefit from the primary residence rebate of R1,5 million for Capital Gains Tax, if still not owned in your personal name.
- Transfer duty on the acquisition into your private name is exempt.