»
Jun 12, 2007:
Thanks to focused lobbying by Sapoa and its Property Management Committee, stamp duties on fixed property leases have been reduced in the latest amendments released by SARS last month.
Stamp duty on short-term leases has been abolished and duty on longer-term leases has been capped, explains Jay Junkoon of Sapoa's Property Management Committee.
Specifically, leases with a term of less than up to five years will no longer need to be stamped at all. Furthermore, stamp duty will be limited to 8 percent of a property's market value, ensuring a ceiling on the stamp duties payable on long leases.
"We are very pleased that our inputs and recommendations to SARS and the National Treasury have been accepted and acted upon," adds Junkoon
Sapoa first grew concerned when SARS published stamp duty amendments in 2005. There were two particular points in contention.
"Firstly, stamp duty was doubled for all leases, unless duty was less than R200," Junkoon elaborates. "Secondly, the market value method of stamping a lease was removed."
These amendments, Sapoa believed, made stamp duty costs on leases rise exorbitantly for the commercial and industrial property industry. Sapoa's Property Management Committee was mandated to lobby with SARS and the Treasury to address these concerns.
The new stamp duty amendments came into effect on 1 June 2007.
