The date of liability for transfer duty on the acquisition of property is the “date of acquisition”. Transfer Duty is payable within six months from the date of acquisition. If the transfer duty is not paid within the period allowed, interest calculated at 10% per annum will be payable in addition to the unpaid transfer duty. Interest on any unpaid duty is calculated in respect of each completed month from the last day of the six-month period to the date of payment.
It is important to take note that the period of six months commences from the date on which the contract was entered into, and not the date when the contract becomes binding upon the parties. For example, transfer duty payment must be effected within 6 months of conclusion of the agreement of sale if made subject to the finalisation of a subdivision of the property, even though the subdivision could take a period of months to be completed.
If you have any other questions, feel free to contact one of our professionals at info@stbb.co.za