Newsletter; Stamp duty exemption on commercial property & Payroll tax reduction (proposed)
Stamp duty exemption on commercial property
From 1 July 2018, commercial property transfers are no longer subject to stamp duty in SA. This may provide opportunities to transfer existing property in certain situations (capital gains tax and LTO fees will still apply). On a $500,000 property transfer, the stamp duty was $21,330 (LTO fees $3,992.50). On a $1,000,000 property, the stamp duty was $48,830 (LTO fees $8,117.50).
Payroll tax reduction (proposed)
From 1 January 2019, it is proposed that businesses with annual taxable wages of up to $1.5 million will be exempt from payroll tax (currently $600,000) and those with wages between $1.5 million and $1.7 million will benefit from a reduced payroll tax rate. The bill needs to be approved by state Parliament.
