Budget 2021

25 Feb 2021 12:00 am

Finance Minister Tito Mboweni's 2021 Budget sees property transfer duty remaining at the rate set in 2020, the planned finalisation of 1 409 restitution claims, and an allocation of R7 billion to the Land Bank.

No changes in this year's budget to Transfer duty, the rate therefore remains as it has been for the last year.  The revised figures by Treasury for revenue from property tax for the 2020/21 year see R15 480 million being raised, while the medium terrm estimate for the 2021/22 year is R 16 837 million - see  Chapter 4: Revenue trends and proposals

Transfer duty rate 2021/2022

Property value (R)

Rates of tax

R0 - R1 000 000

0% of property value

R1 000 001 - R1 375 000

3% of property value above R1 000 000

R1 375 001 - R1 925 000

R11 250 + 6% of property value above R1 375 000

R1 925 001 - R2 475 000

R44 250 + 8% of property value above R1 925 000

R2 475 001 - R11 000 000

R88 250 + 11% of property value above R2 475 000

R11 000 000 and above

R1 026 000 + 13% of property value above R11 000 000

With regards to Land Reform and Rural Development Minister Mboweni spoke about:

"Government plans to finalise 1409 restitution claims at a cost of R9.3 billion over the next three years to achieve redress and equitable access to land. The Department of Agriculture, Land Reform and Rural Development has also set aside R896.7 million for post-settlement support. This will include the recruitment of approximately 10 000 experienced extension officers.

A total MTEF allocation of R7 billion is made to the Land Bank. This allocation will help to resolve the bank’s current default and re-establish the development and transformation mandate. This amount will not affect the expenditure ceiling but will be offset through an expenditure reprioritisation process. Any support to state-owned companies and public entities will have to be done through budget reprioritisation as outlined in the 2020 MTBPS." (at p.7)

To read all documents relating to the budget go to National Treasury Department and for a summary see the Budget 2021 Pocket Tax Guide