South Africa
Securities Transfer Tax Act, 2007
Act 25 of 2007
- Published in Government Gazette 30652 on 8 January 2008
- Assented to on 21 December 2007
- Commenced on 1 July 2008
- Note: See section 12
- [This is the version of this document as it was from 10 January 2012 to 31 March 2012.]
- [Amended by Revenue Laws Amendment Act, 2008 (Act 60 of 2008) on 1 July 2008]
- [Amended by Taxation Laws Amendment Act, 2012 (Act 22 of 2012) on 1 July 2008]
- [Amended by Taxation Laws Amendment Act, 2008 (Act 3 of 2008) on 22 July 2008]
- [Amended by Revenue Laws Amendment Act, 2008 (Act 60 of 2008) on 1 January 2009]
- [Amended by Taxation Laws Amendment Act, 2009 (Act 17 of 2009) on 1 January 2009]
- [Amended by Taxation Laws Amendment Act, 2010 (Act 7 of 2010) on 1 January 2009]
- [Amended by Taxation Laws Second Amendment Act, 2009 (Act 18 of 2009) on 30 September 2009]
- [Amended by Taxation Laws Amendment Act, 2011 (Act 24 of 2011) on 1 January 2011]
- [Amended by Taxation Laws Amendment Act, 2012 (Act 22 of 2012) on 1 January 2011]
- [Amended by Taxation Laws Amendment Act, 2011 (Act 24 of 2011) on 10 January 2012]
1. Definitions
In this Act, unless the context indicates otherwise—"close corporation" means a "corporation" as defined in section 1 of the Close Corporation Act, 1984 (Act No. 69 of 1984);"closing price" means the closing price, on the date of the transaction or other manner of acquisition of a listed security, at which that security was traded on the exchange on which it is listed, as determined by that exchange on each day on which trade in that security occurs on that exchange: Provided that where the security was not traded on the date of the transaction or other manner of acquisition, the closing price of that security must be regarded as being the closing price on the last business day, preceding the date of the transaction or other manner of acquisition, on which that security was traded on that exchange;"Commissioner" means the Commissioner for the South African Revenue Service;"company" means any corporation, or company incorporated, established or formed by or under any law;"exchange" means an "exchange" as defined in section 1 of the Securities Services Act, 2004 (Act No. 36 of 2004), and licensed under section 10 of that Act;"Income Tax Act" means the Income Tax Act, 1962 (Act No. 58 of 1962);"lending arrangement" means any arrangement in terms of which—(a)a person (hereinafter referred to as the lender) lends a listed security to another person (hereinafter referred to as the borrower) in order to enable that borrower to effect delivery (other than to any lender in relation to that borrower, unless the borrower can demonstrate that the arrangement was not entered into for the purposes of the avoidance of tax and was not entered into for the purposes of keeping any position open for more than 12 months) of that security within 10 business days after the date of transfer of that security from the lender to the borrower in terms of that arrangement;(b)that borrower in return contractually agrees in writing to deliver a listed security of the same kind and quality to that lender within a period of 12 months from the date of transfer of that security from the lender to the borrower in terms of that arrangement;(c)that borrower is contractually required to compensate that lender for any distributions in respect of the listed security which that lender would have been entitled to receive during that period had that arrangement not been entered into; and(d)that arrangement does not affect the lender’s benefits or risks arising from fluctuations in the market value of the listed security,but does not include an arrangement where the borrower has not—(i)on-delivered the listed security within the period referred to in paragraph (a); or(ii)returned the listed security contemplated in paragraph (b) to the lender within the period referred to in that paragraph;"listed security" means any security that is listed on an exchange;"lowest price" means the lowest price, on the date of the transaction or other manner of acquisition of a listed security, at which that security was traded on the exchange on which it is listed, as determined by that exchange on each day on which trade in that security occurs on that exchange: Provided that where that security was not traded on the date of the transaction or other manner of acquisition, the lowest price of that security must be regarded as being the lowest price on the last business day, preceding the date of the transaction or other manner of acquisition, on which that security was traded on that exchange;"member" means any person who is an "authorised user" as defined in section 1 of the Securities Services Act, 2004 (Act No. 36 of 2004), providing such security services as the rules of the exchange permit including services in respect of the buying and selling of a listed security;"Minister" means the Minister of Finance;"participant" means a person that holds in custody and administers a listed security or an interest in a listed security and that has been accepted in terms of section 34 of the Securities Services Act, 2004 (Act No. 36 of 2004), by a central securities depository as a participant in that central securities depository;"person" includes—(a)any sphere of the Government of the Republic;(b)any body of persons (incorporated or unincorporated);(c)the estate of any deceased or insolvent person;(d)any trust fund; and(e)any portfolio comprised in any collective investment scheme in securities contemplated in Part IV of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002);"prescribed rate", in relation to any interest payable in terms of the Securities Transfer Tax Administration Act, 2007, means such rate as the Minister may fix from time to time by notice in the Gazette in terms of section 80(1)(b) of the Public Finance Management Act, 1999 (Act No. 1 of 1999): Provided that where the Minister fixes a new rate in terms of that Act, that new rate applies for the purposes of the Securities Transfer Tax Administration Act, 2007, from the first day of the second month following the date on which that new rate came into operation;"Republic" means the "Republic" as defined in section 1 of the Income Tax Act;"security" means—(a)any share or depository receipt in a company;(b)any member’s interest in a close corporation; or(c)any right or entitlement to receive any distribution from a company or close corporation,excluding the debt portion in respect of a share linked to a debenture;"tax" means the tax payable in terms of this Act;"transfer" includes the transfer, sale, assignment or cession, or disposal in any other manner, of a security or the cancellation or redemption of that security, but does not include—(a)any event that does not result in a change in beneficial ownership;(b)any issue of a security; or(c)a cancellation or redemption of a security if the company which issued the security is being wound up, liquidated or deregistered or its corporate existence is being finally terminated;"unlisted security" means any security other than a listed security.2. Imposition of tax
3. Purchase of listed securities through or from member
4. Transfer of listed securities effected by participant
5. Other transfers of listed securities
6. Transfer of unlisted securities
7. Tax recoverable from person to whom security is transferred
8. Exemptions
9. Schemes for obtaining undue tax benefits
10. Effect of certain exemptions from taxes
No provision contained in any other law providing for an exemption from any tax shall be construed as applying or referring, as the case may be, to the tax payable in terms of this Act.11. Repeal of Act
12. Short title and commencement
This Act is called the Securities Transfer Tax Act, 2007, and comes into operation on 1 July 2008.History of this document
01 January 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2021
19 January 2022 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2021
20 January 2021 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2020
15 January 2020 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2019
17 January 2019 amendment not yet applied
Amended by
Tax Administration Laws Amendment Act, 2018
01 January 2018 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2017
19 January 2017 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2016
01 January 2017 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2016
08 January 2016 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2015
01 January 2016 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2015
16 January 2014 amendment not yet applied
Amended by
Tax Administration Laws Amendment Act, 2013
04 July 2013 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2013
03 June 2013 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2014
01 April 2013 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2012
01 January 2013 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2010
Amended by
Taxation Laws Amendment Act, 2011
Amended by
Taxation Laws Amendment Act, 2012
01 April 2012 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2011
10 January 2012 this version
Amended by
Taxation Laws Amendment Act, 2011
01 January 2011
Amended by
Taxation Laws Amendment Act, 2011
Amended by
Taxation Laws Amendment Act, 2012
Read this version
30 September 2009
01 January 2009
Amended by
Revenue Laws Amendment Act, 2008
Amended by
Taxation Laws Amendment Act, 2009
Amended by
Taxation Laws Amendment Act, 2010
Read this version
22 July 2008
01 July 2008
Amended by
Revenue Laws Amendment Act, 2008
Amended by
Taxation Laws Amendment Act, 2012
Commenced
Read this version
Note: See section 12
08 January 2008
21 December 2007
Assented to
Cited documents 6
Legislation 6
Documents citing this one 16
Gazette 15
- South Africa Government Gazette dated 2008-07-03 number 31208
- South Africa Government Gazette dated 2009-09-30 number 32611
- South Africa Government Gazette dated 2009-11-26 number 32724
- South Africa Government Gazette dated 2010-11-02 number 33726
- South Africa Government Gazette dated 2012-12-14 number 35957
- South Africa Government Gazette dated 2013-02-01 number 36122
- South Africa Government Gazette dated 2013-05-30 number 36509
- South Africa Government Gazette dated 2013-12-12 number 37158
- South Africa Government Gazette dated 2015-03-30 number 38653
- South Africa Government Gazette dated 2016-01-08 number 39588
- South Africa Government Gazette dated 2017-01-19 number 40562
- South Africa Government Gazette dated 2017-12-18 number 41342 part 1
- South Africa Government Gazette dated 2019-01-17 number 42169
- South Africa Government Gazette dated 2021-01-20 number 44083
- South Africa Government Gazette dated 2022-01-19 number 45787