(Effective 1 July 2008)

From 1 July 2008 the stamp duty on the transfer of unlisted shares and the uncertificated securities transfer tax on listed shares, are abolished.

At that date securities transfer tax is introduced at a rate of 0.25% of the consideration, closing price or market value (whichever is the greater) on the transfer, cancellation or redemption of any:

	Listed share;
	Unlisted share;
	Member’s interest in a close corporation or
	Cession of a right to receive distributions from a company or close corporation

No STT is payable on the initial issue of shares.

For transfer transactions, STT is payable by the purchaser, but must be paid through the member holding the security.

In the event of redemption or cancellation of the shares, the company or close corporation which shares are being canceled or redeemed, are liable for STT.
When is Securities Transfer Tax payable ?
By the 14th day of the month following the month during which transfers of listed securities occurred.
Within two months from the end of the month in which the unlisted securities are transferred.

How is Securities Transfer Tax payable?

	An electronic payment must be made by using the SARS e-STT system.
	In the case of the transfer of listed securities the member or participant must by the 14th day of the month following the month during which transfers took place submit a declaration electronically, in the form and manner as the Commissioner may determine and containing the information prescribed by the Commissioner, stating the amount of tax payable by that member or participant.
	Revenue stamps or an impressed stamp may not be used to pay Securities Transfer Tax. The only method of payment will be through the SARS e-STT system.