Rule 4 provides that subject to the provisions of rule 6 (which contains rules for ‘structured arrangements’), a person who makes a transfer to which these rules apply shall be exempt from the tax otherwise chargeable on that transfer in terms of article 5A of the Income Tax Act to the extent that it exceeds the tax calculated in accordance with Rule 5, on condition that the tax so calculated is duly paid in accordance with the provisions of article 5A(11) of the Income Tax Act.
The rules apply to any transfer of immovable property that satisfies all the following conditions:
- the transfer is made on or after 9 June 2020 but before 1 April 2021;
- the notice of the transfer in terms of rule 22(2) of the Tax on Property Transfers Rules is delivered to the Commissioner for Revenue by not later than 30 April 2021.
- in terms of article 5A of the Income Tax Act, the transfer would otherwise be subject to tax at the rate of 8% or 10%;
If the above conditions are satisfied, the tax on the first €400,000 of the transfer value shall be calculated at the rate of 5%. The tax on the remainder of the transfer value shall be calculated at the rate of 8% or 10%, as the case may be, in accordance with the applicable provisions of article 5A of the Income Tax Act.