12.9 SECURITIES TRANSFER TAX
Share transfer tax was what we used to call it. We now call it securities transfer tax. A tax 0f .025% has to be paid on various share transactions.
Securities transfer tax is regulated by the Securities Transfer Act No 25 of 2007 as amended and the Securities Tax Administration Act, No 26 0of 2007 as amended.
S1 of the Securities Transfer Act says, security means any share or depository receipt in a company or a member’s interest in a close corporation, but the definition excludes the debt portion in respect of a share linked to a debenture.
Transfer includes; -
· Transfer
· Sale
· Assignment
· Cession
· Disposal in any other manner
· Cancellation
· Redemption of that security
· But does not include
· Any event that does not result in a change of beneficial ownership
· Any issue of a security
· A cancellation or redemption of a security if the company is being wound up, liquidated or deregister
There are a number of exemptions for more complicated types of transactions which you need to take advice on.