Successfully reported this slideshow.

Real Estate Guide 2010

1,289 views

Published on

The Susan Deacon Property Group your guide to South African real estate

http://www.susandeacon.co.za

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

Real Estate Guide 2010

  1. 1. 2010THE REAL ESTATE k GUIDE
  2. 2. qetting your home loan approved can be easy. Jump over! Let Betterbond assist in Removing the obstacles between you and your dream home. Call Betterbond on 0800 007 111 or visit www.betterbond.co.za Betterbond Offices Head Office (011) 516-5500 JHB North/West (011) 476-9002 Bloemfontein (051) 430-7888 KwaZulu Natal (031) 209-8585 Centurion (012) 663-2637 Rustenburg (014) 594-2191 Eastern Cape (041) 374-0950 Vaal (016) 982-4363 Germiston (011) 827-5780 Western Cape (021) 557-9401 JHB South/East (011) 896-5230
  3. 3. Index Reduced Repayment Terms Page 4 Bond Repayment Factors Page 6 Income Qualification Page 9 Transfer and Conveyancing Costs Page 16 Financial Information Page 23 The Property Transfer Procedure Page 41 The Philosophy of Financial Planning Page 44 Formation of a Company Page 46 Formation of a Close Corporation Page 47 Useful Contacts Page 49 While every care has been taken to ensure that the information in this publication is correct, The property Association assumes no Responsibility for possible errors or omissions.
  4. 4. Reduced Repayment Terms By paying a small additional amount each month on your bond you can save a lot of money. The table below shows how much you can save as well as the reduced term resulting from additional payment on your bond. The table is based on a R100 000 bond at a rate of 11% with a repayment term of 20 years. Monthly Additional Repayment Total Cash Premium Monthly Term Payments Saving Payment R 1 032 R0 20 R 247 680 R0 R 1 047 R 15 19 R 238 716 R 8 964 R 1 065 R 33 18 R 230 040 R 17 640 R 1 085 R 53 17 R 221 340 R 26 340 R 1 109 R 77 16 R 212 928 R 34 752 R 1 137 R 105 15 R 204 660 R 43 020 R 1 169 R 137 14 R 196 392 R 51 288 R 1 208 R 176 13 R 188 448 R 59 232 R 1 254 R 222 12 R 180 576 R 67 104 R 1 309 R 277 11 R 172 788 R 74 892 R 1 378 R 346 10 R 165 360 R 82 320 R 1 463 R 431 9 R 158 004 R 89 676 R 1 571 R 539 8 R 150 816 R 96 864 R 1 712 R 680 7 R 143 808 R 103 872 R 1 903 R 871 6 R 137 016 R 110 664 R 2 174 R 1 142 5 R 130 440 R 117 240 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 4
  5. 5. Introducing…. Blue Door’s Amazing Race How it works All Estate Agents that show their support by submitting their deals through Betterbond will automatically qualify to participate in Blue Door’s Amazing Race! The race STARTS 1 March 2010 and CONCLUDES 31 October 2010 Estate Agents will continue to earn R50 for every R150 000 deal that is GRANTED through Betterbond. Throughout the Race Estate Agents must look out for further communication via SMS. There will be exciting opportunities to WIN a share of R1500 in CASH prizes every month! *Prizes will be paid out within 72 hours of winners being notified* Amazing CASH prizes to be WON: The overall estate agent to Reach the FINISH line with the highest Rand-value grants will win R35 000 in Blue Door CASH and will be crowned the NATIONAL Blue Door Amazing Race WINNER for 2010! There is also a R15 000 CASH prize for each of the 3 Runners Up! For more information contact the Blue Door team on 0861 112 115 The Race is on!
  6. 6. Bond Repayment Factors The table below gives the monthly repayment per R1 000 of a loan with an interest rate between 7% and 22% per annum, over a period of 5, 10, 15, 20, 25 or 30 years. For example, if the loan is R100 000, at an interest rate of 11% p.a. to be repaid over 20 years, the monthly repayment is: R100 000 ÷ 1 000 x 10,32 = R1 032.00 per month. Interest % Years 5 10 15 20 25 30 7.00% 19.80 11.61 8.99 7.75 7.07 6.65 7.25% 19.92 11.74 9.13 7.90 7.23 6.82 7.50% 20.04 11.87 9.27 8.06 7.39 6.99 7.75% 20.16 12.00 9.41 8.21 7.55 7.16 8.00% 20.28 12.13 9.56 8.36 7.72 7.34 8.25% 20.40 12.27 9.70 8.52 7.88 7.51 8.50% 20.52 12.40 9.85 8.68 8.05 7.69 8.75% 20.64 12.53 9.99 8.84 8.22 7.87 9.00% 20.76 12.67 10.14 9.00 8.39 8.05 9.25% 20.88 12.80 10.29 9.16 8.56 8.23 9.50% 21.00 12.94 10.44 9.32 8.74 8.41 9.75% 21.12 13.08 10.59 9.49 8.91 8.59 10.00% 21.25 13.22 10.75 9.65 9.09 8.78 10.25% 21.37 13.35 10.90 9.82 9.26 8.96 10.50% 21.49 13.49 11.05 9.98 9.44 9.15 10.75% 21.62 13.63 11.21 10.15 9.62 9.33 11.00% 21.74 13.78 11.37 10.32 9.80 9.52 11.25% 21.87 13.92 11.52 10.49 9.98 9.71 11.50% 21.99 14.06 11.68 10.66 10.16 9.90 11.75% 22.12 14.20 11.84 10.84 10.35 10.09 12.00% 22.24 14.35 12.00 11.01 10.53 10.29 12.25% 22.37 14.49 12.16 11.19 10.72 10.48 12.50% 22.50 14.64 12.33 11.36 10.90 10.67 12.75% 22.63 14.78 12.49 11.54 11.09 10.87 13.00% 22.75 14.93 12.65 11.72 11.28 11.06 13.25% 22.88 15.08 12.82 11.89 11.47 11.26 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 6
  7. 7. Bond Repayment Factors Interest % Years 5 10 15 20 25 30 13.50% 23.01 15.23 12.98 12.07 11.66 11.45 13.75% 23.14 15.38 13.15 12.25 11.85 11.65 14.00% 23.27 15.53 13.32 12.44 12.04 11.85 14.25% 23.40 15.68 13.49 12.62 12.23 12.05 14.50% 23.53 15.83 13.66 12.80 12.42 12.25 14.75% 23.66 15.98 13.83 12.98 12.61 12.44 15.00% 23.79 16.13 14.00 13.17 12.81 12.64 15.25% 23.92 16.29 14.17 13.35 13.00 12.84 15.50% 24.05 16.44 14.34 13.54 13.20 13.05 15.75% 24.19 16.60 14.51 13.73 13.39 13.25 16.00% 24.32 16.75 14.69 13.91 13.59 13.45 16.25% 24.45 16.91 14.86 14.10 13.79 13.65 16.50% 24.58 17.06 15.04 14.29 13.98 13.85 16.75% 24.72 17.22 15.21 14.48 14.18 14.05 17.00% 24.85 17.38 15.39 14.67 14.38 14.26 17.25% 24.99 17.54 15.57 14.86 14.58 14.46 17.50% 25.12 17.70 15.75 15.05 14.78 14.66 17.75% 25.26 17.86 15.92 15.24 14.97 14.87 18.00% 25.39 18.02 16.10 15.43 15.17 15.07 18.25% 25.53 18.18 16.28 15.63 15.37 15.28 18.50% 25.67 18.34 16.47 15.82 15.57 15.48 18.75% 25.80 18.50 16.65 16.01 15.78 15.68 19.00% 25.94 18.67 16.83 16.21 15.98 15.89 19.25% 26.08 18.83 17.01 16.40 16.18 16.09 19.50% 26.22 19.00 17.19 16.60 16.38 16.30 19.75% 26.35 19.16 17.38 16.79 16.58 16.50 20.00% 26.49 19.33 17.56 16.99 16.78 16.71 20.25% 26.63 19.49 17.75 17.18 16.99 16.92 20.50% 26.77 19.66 17.93 17.38 17.19 17.12 20.75% 26.91 19.83 18.12 17.58 17.39 17.33 21.00% 27.05 19.99 18.31 17.78 17.60 17.53 21.25% 27.19 20.16 18.49 17.97 17.80 17.74 21.50% 27.34 20.33 18.68 18.17 18.00 17.95 21.75% 27.48 20.50 18.87 18.37 18.21 18.15 22.00% 27.62 20.67 19.06 18.57 18.41 18.36 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 7
  8. 8. Paforma your Deal Why Paforma … • We are available nationally to answer your call and assist you with fast and convenient bridging finance. Wherever you are, call our national toll free number and one of our consultants will guide you through the process. • Seamless electronic operations and streamlined documentation • Team of service-oriented, highly trained and professional personnel • Transparent and competitively priced products What do we offer you? Agent Commission Paforma will contract with the Agency and purchase the right to the Agent commission. We advance up to 80% of the commission due to the agent. Bridging Finance We advance up to 80% of the surplus available from sale proceeds, further advance/switch proceeds within 24 hours of requirements being met. No more waiting for registration to take place. Transfer Duty and Rates Quick and Easy same day service for conveyancers. We will contract directly with the conveyancer, provided that the client signs consent thereto. Should the conveyancer prefer for us to contract directly with the client, such application will be attended to and concluded directly with the client. How much does it cost? A contract amount equal to 7.5% of the advance required is due and payable for a 60 day contract period. Should settlement not be made within 60 days of date of advance, the client will be liable for payment of damages calculated daily at 0.125%. However, should settlement be made earlier than 60 days of date of advance, Paforma undertakes to reduce the contract amount accordingly. The minimum contract amount payable on any transaction is R500. Salient Requirements • Full purchase price must be secure • All relevant bond and transfer documents must be signed • All conditions of the bond and sale must be met How do you apply? Call our Toll Free number 0800 BRIDGE (0800 274343) for your application to be captured telephonically or to request an application form for completion.
  9. 9. Income Qualifications These tables give the bond available for a specific income e.g. someone earning R6 000 p.m. Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 2000 600 R 66,667 R 64,378 R 62,176 R 60,120 R 58,140 R 56,285 2500 750 R 83,333 R 80,472 R 77,720 R 75,150 R 72,674 R 70,356 3000 900 R100,000 R 96,567 R 93,264 R 90,180 R 87,209 R 84,428 3500 1050 R 116,667 R 112,661 R 108,808 R 105,210 R 101,744 R 98,499 4000 1200 R 133,333 R 128,755 R 124,352 R 120,240 R 116,279 R 112,570 4500 1350 R 150,000 R 144,850 R 139,896 R 135,271 R 130,814 R 126,642 5000 1500 R 166,667 R 160,944 R 155,440 R 150,301 R 145,349 R 140,713 5500 1650 R 183,333 R 177,039 R 170,984 R 165,331 R 159,884 R 154,784 6000 1800 R 200,000 R 193,133 R 186,528 R 180,361 R 174,419 R 168,856 6500 1950 R 216,667 R 209,227 R 202,073 R 195,391 R 188,953 R 182,927 7000 2100 R 233,333 R 225,322 R 217,617 R 210,421 R 203,488 R 196,998 7500 2250 R 250,000 R 241,416 R 233,161 R 225,451 R 218,023 R 211,069 8000 2400 R 266,667 R 257,511 R 248,705 R 240,481 R 232,558 R 225,141 8500 2550 R 283,333 R 273,605 R 264,249 R 255,511 R 247,093 R 239,212 9000 2700 R 300,000 R 289,700 R 279,793 R 270,541 R 261,628 R 253,283 9500 2850 R 316,667 R 305,794 R 295,337 R 285,571 R 276,163 R 267,355 10000 3000 R 333,333 R 321,888 R 310,881 R 300,601 R 290,698 R 281,426 10500 3150 R 350,000 R 337,983 R 326,425 R 315,631 R 305,233 R 295,497 11000 3300 R 366,667 R 354,077 R 341,969 R 330,661 R 319,767 R 309,568 11500 3450 R 383,333 R 370,172 R 357,513 R 345,691 R 334,302 R 323,640 12000 3600 R 400,000 R 386,266 R 373,057 R 360,721 R 348,837 R 337,711 12500 3750 R 416,667 R 402,361 R 388,601 R 375,752 R 363,372 R 351,782 13000 3900 R 433,333 R 418,455 R 404,145 R 390,782 R 377,907 R 365,854 13500 4050 R 450,000 R 434,549 R 419,689 R 405,812 R 392,442 R 379,925 14000 4200 R 466,667 R 450,644 R 435,233 R 420,842 R 406,977 R 393,996 14500 4350 R 483,333 R 466,738 R 450,777 R 435,872 R 421,512 R 408,068 15000 4500 R 500,000 R 482,833 R 466,321 R 450,902 R 436,047 R 422,139 15500 4650 R 516,667 R 498,927 R 481,865 R 465,932 R 450,581 R 436,210 16000 4800 R 533,333 R 515,021 R 497,409 R 480,962 R 465,116 R 450,281 16500 4950 R 550,000 R 531,116 R 512,953 R 495,992 R 479,651 R 464,353 17000 5100 R 566,667 R 547,210 R 528,497 R 511,022 R 494,186 R 478,424 17500 5250 R 583,333 R 563,305 R 544,041 R 526,052 R 508,721 R 492,495 18000 5400 R 600,000 R 579,399 R 559,585 R 541,082 R 523,256 R 506,567 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 9
  10. 10. Income Qualifications qualifies for a bond of R174 387 @ 30% of his income @ 11% p.a. over a 20 year term. 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00% R 54,496 R 52,817 R 51,195 R 49,710 R 48,232 R 46,875 R 45,558 R 68,120 R 66,021 R 63,993 R 62,138 R 60,289 R 58,594 R 56,948 R 81,744 R 79,225 R 76,792 R 74,565 R 72,347 R 70,313 R 68,337 R 95,368 R 92,430 R 89,590 R 86,993 R 84,405 R 82,031 R 79,727 R 108,992 R 105,634 R 102,389 R 99,420 R 96,463 R 93,750 R 91,116 R 122,616 R 118,838 R 115,188 R 111,848 R 108,521 R 105,469 R 102,506 R 136,240 R 132,042 R 127,986 R 124,275 R 120,579 R 117,188 R 113,895 R 149,864 R 145,246 R 140,785 R 136,703 R 132,637 R 128,906 R 125,285 R 163,488 R 158,451 R 153,584 R 149,130 R 144,695 R 140,625 R 136,674 R 177,112 R 171,655 R 166,382 R 161,558 R 156,752 R 152,344 R 148,064 R 190,736 R 184,859 R 179,181 R 173,985 R 168,810 R 164,063 R 159,453 R 204,360 R 198,063 R 191,980 R 186,413 R 180,868 R 175,781 R 170,843 R 217,984 R 211,268 R 204,778 R 198,840 R 192,926 R 187,500 R 182,232 R 231,608 R 224,472 R 217,577 R 211,268 R 204,984 R 199,219 R 193,622 R 245,232 R 237,676 R 230,375 R 223,695 R 217,042 R 210,938 R 205,011 R 258,856 R 250,880 R 243,174 R 236,123 R 229,100 R 222,656 R 216,401 R 272,480 R 264,085 R 255,973 R 248,550 R 241,158 R 234,375 R 227,790 R 286,104 R 277,289 R 268,771 R 260,978 R 253,215 R 246,094 R 239,180 R 299,728 R 290,493 R 281,570 R 273,405 R 265,273 R 257,813 R 250,569 R 313,351 R 303,697 R 294,369 R 285,833 R 277,331 R 269,531 R 261,959 R 326,975 R 316,901 R 307,167 R 298,260 R 289,389 R 281,250 R 273,349 R 340,599 R 330,106 R 319,966 R 310,688 R 301,447 R 292,969 R 284,738 R 354,223 R 343,310 R 332,765 R 323,115 R 313,505 R 304,688 R 296,128 R 367,847 R 356,514 R 345,563 R 335,543 R 325,563 R 316,406 R 307,517 R 381,471 R 369,718 R 358,362 R 347,970 R 337,621 R 328,125 R 318,907 R 395,095 R 382,923 R 371,160 R 360,398 R 349,678 R 339,844 R 330,296 R 408,719 R 396,127 R 383,959 R 372,825 R 361,736 R 351,563 R 341,686 R 422,343 R 409,331 R 396,758 R 385,253 R 373,794 R 363,281 R 353,075 R 435,967 R 422,535 R 409,556 R 397,680 R 385,852 R 375,000 R 364,465 R 449,591 R 435,739 R 422,355 R 410,108 R 397,910 R 386,719 R 375,854 R 463,215 R 448,944 R 435,154 R 422,535 R 409,968 R 398,438 R 387,244 R 476,839 R 462,148 R 447,952 R 434,963 R 422,026 R 410,156 R 398,633 R 490,463 R 475,352 R 460,751 R 447,390 R 434,084 R 421,875 R 410,023 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 10
  11. 11. Income Qualifications These tables give the bond available for a specific income e.g. someone earning R6 000 p.m. Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 18500 5550 R 616,667 R 595,494 R 575,130 R 556,112 R 537,791 R 520,638 19000 5700 R 633,333 R 611,588 R 590,674 R 571,142 R 552,326 R 534,709 19500 5850 R 650,000 R 627,682 R 606,218 R 586,172 R 566,860 R 548,780 20000 6000 R 666,667 R 643,777 R 621,762 R 601,202 R 581,395 R 562,852 20500 6150 R 683,333 R 659,871 R 637,306 R 616,232 R 595,930 R 576,923 21000 6300 R 700,000 R 675,966 R 652,850 R 631,263 R 610,465 R 590,994 21500 6450 R 716,667 R 692,060 R 668,394 R 646,293 R 625,000 R 605,066 22000 6600 R 733,333 R 708,155 R 683,938 R 661,323 R 639,535 R 619,137 22500 6750 R 750,000 R 724,249 R 699,482 R 676,353 R 654,070 R 633,208 23000 6900 R 766,667 R 740,343 R 715,026 R 691,383 R 668,605 R 647,280 23500 7050 R 783,333 R 756,438 R 730,570 R 706,413 R 683,140 R 661,351 24000 7200 R 800,000 R 772,532 R 746,114 R 721,443 R 697,674 R 675,422 24500 7350 R 816,667 R 788,627 R 761,658 R 736,473 R 712,209 R 689,493 25000 7500 R 833,333 R 804,721 R 777,202 R 751,503 R 726,744 R 703,565 25500 7650 R 850,000 R 820,815 R 792,746 R 766,533 R 741,279 R 717,636 26000 7800 R 866,667 R 836,910 R 808,290 R 781,563 R 755,814 R 731,707 26500 7950 R 883,333 R 853,004 R 823,834 R 796,593 R 770,349 R 745,779 27000 8100 R 900,000 R 869,099 R 839,378 R 811,623 R 784,884 R 759,850 27500 8250 R 916,667 R 885,193 R 854,922 R 826,653 R 799,419 R 773,921 28000 8400 R 933,333 R 901,288 R 870,466 R 841,683 R 813,953 R 787,992 28500 8550 R 950,000 R 917,382 R 886,010 R 856,713 R 828,488 R 802,064 29000 8700 R 966,667 R 933,476 R 901,554 R 871,743 R 843,023 R 816,135 29500 8850 R 983,333 R 949,571 R 917,098 R 886,774 R 857,558 R 830,206 30000 9000 R 1,000,000 R 965,665 R 932,642 R 901,804 R 872,093 R 844,278 30500 9150 R 1,016,667 R 981,760 R 948,187 R 916,834 R 886,628 R 858,349 31000 9300 R 1,033,333 R 997,854 R 963,731 R 931,864 R 901,163 R 872,420 31500 9450 R 1,050,000 R 1,013,948 R 979,275 R 946,894 R 915,698 R 886,492 32000 9600 R 1,066,667 R 1,030,043 R 994,819 R 961,924 R 930,233 R 900,563 32500 9750 R 1,083,333 R 1,046,137 R 1,010,363 R 976,954 R 944,767 R 914,634 33000 9900 R 1,100,000 R 1,062,232 R 1,025,907 R 991,984 R 959,302 R 928,705 33500 10050 R 1,116,667 R 1,078,326 R 1,041,451 R 1,007,014 R 973,837 R 942,777 34000 10200 R 1,133,333 R 1,094,421 R 1,056,995 R 1,022,044 R 988,372 R 956,848 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 11
  12. 12. Income Qualifications qualifies for a bond of R174 387 @ 30% of his income @ 11% p.a. over a 20 year term. 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00% R 504,087 R 488,556 R 473,549 R 459,818 R 446,141 R 433,594 R 421,412 R 517,711 R 501,761 R 486,348 R 472,245 R 458,199 R 445,313 R 432,802 R 531,335 R 514,965 R 499,147 R 484,673 R 470,257 R 457,031 R 444,191 R 544,959 R 528,169 R 511,945 R 497,100 R 482,315 R 468,750 R 455,581 R 558,583 R 541,373 R 524,744 R 509,528 R 494,373 R 480,469 R 466,970 R 572,207 R 554,577 R 537,543 R 521,955 R 506,431 R 492,188 R 478,360 R 585,831 R 567,782 R 550,341 R 534,383 R 518,489 R 503,906 R 489,749 R 599,455 R 580,986 R 563,140 R 546,810 R 530,547 R 515,625 R 501,139 R 613,079 R 594,190 R 575,939 R 559,238 R 542,605 R 527,344 R 512,528 R 626,703 R 607,394 R 588,737 R 571,665 R 554,662 R 539,063 R 523,918 R 640,327 R 620,599 R 601,536 R 584,093 R 566,720 R 550,781 R 535,308 R 653,951 R 633,803 R 614,334 R 596,520 R 578,778 R 562,500 R 546,697 R 667,575 R 647,007 R 627,133 R 608,948 R 590,836 R 574,219 R 558,087 R 681,199 R 660,211 R 639,932 R 621,375 R 602,894 R 585,938 R 569,476 R 694,823 R 673,415 R 652,730 R 633,803 R 614,952 R 597,656 R 580,866 R 708,447 R 686,620 R 665,529 R 646,230 R 627,010 R 609,375 R 592,255 R 722,071 R 699,824 R 678,328 R 658,658 R 639,068 R 621,094 R 603,645 R 735,695 R 713,028 R 691,126 R 671,085 R 651,125 R 632,813 R 615,034 R 749,319 R 726,232 R 703,925 R 683,513 R 663,183 R 644,531 R 626,424 R 762,943 R 739,437 R 716,724 R 695,940 R 675,241 R 656,250 R 637,813 R 776,567 R 752,641 R 729,522 R 708,368 R 687,299 R 667,969 R 649,203 R 790,191 R 765,845 R 742,321 R 720,795 R 699,357 R 679,688 R 660,592 R 803,815 R 779,049 R 755,119 R 733,223 R 711,415 R 691,406 R 671,982 R 817,439 R 792,254 R 767,918 R 745,650 R 723,473 R 703,125 R 683,371 R 831,063 R 805,458 R 780,717 R 758,078 R 735,531 R 714,844 R 694,761 R 844,687 R 818,662 R 793,515 R 770,505 R 747,588 R 726,563 R 706,150 R 858,311 R 831,866 R 806,314 R 782,933 R 759,646 R 738,281 R 717,540 R 871,935 R 845,070 R 819,113 R 795,360 R 771,704 R 750,000 R 728,929 R 885,559 R 858,275 R 831,911 R 807,788 R 783,762 R 761,719 R 740,319 R 899,183 R 871,479 R 844,710 R 820,215 R 795,820 R 773,438 R 751,708 R 912,807 R 884,683 R 857,509 R 832,643 R 807,878 R 785,156 R 763,098 R 926,431 R 897,887 R 870,307 R 845,070 R 819,936 R 796,875 R 774,487 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 12
  13. 13. Income Qualifications These tables give the bond available for a specific income e.g. someone earning R6 000 p.m. Salary Qualify 30% 9% 9.50% 10% 10.50% 11% 11.50% 34500 10350 R 1,150,000 R 1,110,515 R 1,072,539 R 1,037,074 R 1,002,907 R 970,919 35000 10500 R 1,166,667 R 1,126,609 R 1,088,083 R 1,052,104 R 1,017,442 R 984,991 35500 10650 R 1,183,333 R 1,142,704 R 1,103,627 R 1,067,134 R 1,031,977 R 999,062 36000 10800 R 1,200,000 R 1,158,798 R 1,119,171 R 1,082,164 R 1,046,512 R 1,013,133 36500 10950 R 1,216,667 R 1,174,893 R 1,134,715 R 1,097,194 R 1,061,047 R 1,027,205 37000 11100 R 1,233,333 R 1,190,987 R 1,150,259 R 1,112,224 R 1,075,581 R 1,041,276 37500 11250 R 1,250,000 R 1,207,082 R 1,165,803 R 1,127,255 R 1,090,116 R 1,055,347 38000 11400 R 1,266,667 R 1,223,176 R 1,181,347 R 1,142,285 R 1,104,651 R 1,069,418 38500 11550 R 1,283,333 R 1,239,270 R 1,196,891 R 1,157,315 R 1,119,186 R 1,083,490 39000 11700 R 1,300,000 R 1,255,365 R 1,212,435 R 1,172,345 R 1,133,721 R 1,097,561 39500 11850 R 1,316,667 R 1,271,459 R 1,227,979 R 1,187,375 R 1,148,256 R 1,111,632 40000 12000 R 1,333,333 R 1,287,554 R 1,243,523 R 1,202,405 R 1,162,791 R 1,125,704 40500 12150 R 1,350,000 R 1,303,648 R 1,259,067 R 1,217,435 R 1,177,326 R 1,139,775 41000 12300 R 1,366,667 R 1,319,742 R 1,274,611 R 1,232,465 R 1,191,860 R 1,153,846 41500 12450 R 1,383,333 R 1,335,837 R 1,290,155 R 1,247,495 R 1,206,395 R 1,167,917 42000 12600 R 1,400,000 R 1,351,931 R 1,305,699 R 1,262,525 R 1,220,930 R 1,181,989 42500 12750 R 1,416,667 R 1,368,026 R 1,321,244 R 1,277,555 R 1,235,465 R 1,196,060 43000 12900 R 1,433,333 R 1,384,120 R 1,336,788 R 1,292,585 R 1,250,000 R 1,210,131 43500 13050 R 1,450,000 R 1,400,215 R 1,352,332 R 1,307,615 R 1,264,535 R 1,224,203 44000 13200 R 1,466,667 R 1,416,309 R 1,367,876 R 1,322,645 R 1,279,070 R 1,238,274 44500 13350 R 1,483,333 R 1,432,403 R 1,383,420 R 1,337,675 R 1,293,605 R 1,252,345 45000 13500 R 1,500,000 R 1,448,498 R 1,398,964 R 1,352,705 R 1,308,140 R 1,266,417 45500 13650 R 1,516,667 R 1,464,592 R 1,414,508 R 1,367,735 R 1,322,674 R 1,280,488 46000 13800 R 1,533,333 R 1,480,687 R 1,430,052 R 1,382,766 R 1,337,209 R 1,294,559 46500 13950 R 1,550,000 R 1,496,781 R 1,445,596 R 1,397,796 R 1,351,744 R 1,308,630 47000 14100 R 1,566,667 R 1,512,876 R 1,461,140 R 1,412,826 R 1,366,279 R 1,322,702 47500 14250 R 1,583,333 R 1,528,970 R 1,476,684 R 1,427,856 R 1,380,814 R 1,336,773 48000 14400 R 1,600,000 R 1,545,064 R 1,492,228 R 1,442,886 R 1,395,349 R 1,350,844 48500 14550 R 1,616,667 R 1,561,159 R 1,507,772 R 1,457,916 R 1,409,884 R 1,364,916 49000 14700 R 1,633,333 R 1,577,253 R 1,523,316 R 1,472,946 R 1,424,419 R 1,378,987 49500 14850 R 1,650,000 R 1,593,348 R 1,538,860 R 1,487,976 R 1,438,953 R 1,393,058 50000 15000 R 1,666,667 R 1,609,442 R 1,554,404 R 1,503,006 R 1,453,488 R 1,407,129 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 13
  14. 14. Income Qualifications qualifies for a bond of R174 387 @ 30% of his income @ 11% p.a. over a 20 year term. 12% 12.50% 13.00% 13.5% 14.00% 14.5% 15.00% R 940,054 R 911,092 R 883,106 R 857,498 R 831,994 R 808,594 R 785,877 R 953,678 R 924,296 R 895,904 R 869,925 R 844,051 R 820,313 R 797,267 R 967,302 R 937,500 R 908,703 R 882,353 R 856,109 R 832,031 R 808,656 R 980,926 R 950,704 R 921,502 R 894,780 R 868,167 R 843,750 R 820,046 R 994,550 R 963,908 R 934,300 R 907,208 R 880,225 R 855,469 R 831,435 R 1,008,174 R 977,113 R 947,099 R 919,635 R 892,283 R 867,188 R 842,825 R 1,021,798 R 990,317 R 959,898 R 932,063 R 904,341 R 878,906 R 854,214 R 1,035,422 R 1,003,521 R 972,696 R 944,490 R 916,399 R 890,625 R 865,604 R 1,049,046 R 1,016,725 R 985,495 R 956,918 R 928,457 R 902,344 R 876,993 R 1,062,670 R 1,029,930 R 998,294 R 969,345 R 940,514 R 914,063 R 888,383 R 1,076,294 R 1,043,134 R 1,011,092 R 981,773 R 952,572 R 925,781 R 899,772 R 1,089,918 R 1,056,338 R 1,023,891 R 994,200 R 964,630 R 937,500 R 911,162 R 1,103,542 R 1,069,542 R 1,036,689 R 1,006,628 R 976,688 R 949,219 R 922,551 R 1,117,166 R 1,082,746 R 1,049,488 R 1,019,056 R 988,746 R 960,938 R 933,941 R 1,130,790 R 1,095,951 R 1,062,287 R 1,031,483 R 1,000,804 R 972,656 R 945,330 R 1,144,414 R 1,109,155 R 1,075,085 R 1,043,911 R 1,012,862 R 984,375 R 956,720 R 1,158,038 R 1,122,359 R 1,087,884 R 1,056,338 R 1,024,920 R 996,094 R 968,109 R 1,171,662 R 1,135,563 R 1,100,683 R 1,068,766 R 1,036,977 R 1,007,813 R 979,499 R 1,185,286 R 1,148,768 R 1,113,481 R 1,081,193 R 1,049,035 R 1,019,531 R 990,888 R 1,198,910 R 1,161,972 R 1,126,280 R 1,093,621 R 1,061,093 R 1,031,250 R 1,002,278 R 1,212,534 R 1,175,176 R 1,139,078 R 1,106,048 R 1,073,151 R 1,042,969 R 1,013,667 R 1,226,158 R 1,188,380 R 1,151,877 R 1,118,476 R 1,085,209 R 1,054,688 R 1,025,057 R 1,239,782 R 1,201,585 R 1,164,676 R 1,130,903 R 1,097,267 R 1,066,406 R 1,036,446 R 1,253,406 R 1,214,789 R 1,177,474 R 1,143,331 R 1,109,325 R 1,078,125 R 1,047,836 R 1,267,030 R 1,227,993 R 1,190,273 R 1,155,758 R 1,121,383 R 1,089,844 R 1,059,226 R 1,280,654 R 1,241,197 R 1,203,072 R 1,168,186 R 1,133,441 R 1,101,563 R 1,070,615 R 1,294,278 R 1,254,401 R 1,215,870 R 1,180,613 R 1,145,498 R 1,113,281 R 1,082,005 R 1,307,902 R 1,267,606 R 1,228,669 R 1,193,041 R 1,157,556 R 1,125,000 R 1,093,394 R 1,321,526 R 1,280,810 R 1,241,468 R 1,205,468 R 1,169,614 R 1,136,719 R 1,104,784 R 1,335,150 R 1,294,014 R 1,254,266 R 1,217,896 R 1,181,672 R 1,148,438 R 1,116,173 R 1,348,774 R 1,307,218 R 1,267,065 R 1,230,323 R 1,193,730 R 1,160,156 R 1,127,563 R 1,362,398 R 1,320,423 R 1,279,863 R 1,242,751 R 1,205,788 R 1,171,875 R 1,138,952 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 14
  15. 15. Transfer & Conveyancing Costs UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEES Courtesy Dykes van Heerden Inc - Attorneys and Conveyancers Transfer Costs Bond Costs Purchase Transfer Duty Total Price Bond Conv Misc VAT Deeds Natural Legal Natural Legal Conv Misc VAT Deeds Total Amount Fee Office Person Person Person Person Fee Office 60,000 3200 450 511 70 0 4800 4231 9031 2500 450 413 260 3623 70,000 3200 450 511 70 0 5600 4231 9831 2500 450 413 260 3623 80,000 3200 450 511 70 0 6400 4231 10631 2500 450 413 260 3623 90,000 3400 450 539 70 0 7200 4459 11659 2500 450 413 260 3623 100,000 3650 450 574 70 0 8000 4744 12744 2500 450 413 260 3623 105,000 3750 450 588 70 0 8400 4858 13258 2600 450 427 260 3737 115,000 3750 450 588 70 0 9200 4858 14058 2600 450 427 260 3737 125,000 3750 450 588 70 0 10000 4858 14858 2600 450 427 260 3737 130,000 3900 450 609 70 0 10400 5029 15429 2700 450 441 260 3851 140,000 3900 450 609 70 0 11200 5029 16229 2700 450 441 260 3851 150,000 3900 450 609 70 0 12000 5029 17029 2700 450 441 260 3851 155,000 4200 450 651 300 0 12400 5601 18001 2900 450 469 300 4119 160,000 4200 450 651 300 0 12800 5601 18401 2900 450 469 300 4119 165,000 4200 450 651 300 0 13200 5601 18801 2900 450 469 300 4119 170,000 4200 450 651 300 0 13600 5601 19201 2900 450 469 300 4119 175,000 4200 450 651 300 0 14000 5601 19601 2900 450 469 300 4119 180,000 4400 450 679 300 0 14400 5829 20229 3000 450 483 300 4233 185,000 4400 450 679 300 0 14800 5829 20629 3000 450 483 300 4233 190,000 4400 450 679 300 0 15200 5829 21029 3000 450 483 300 4233 195,000 4400 450 679 300 0 15600 5829 21429 3000 450 483 300 4233 200,000 4400 450 679 300 0 16000 5829 21829 3000 450 483 300 4233 205,000 4800 450 735 300 0 16400 6285 22685 3300 450 525 300 4575 210,000 4800 450 735 300 0 16800 6285 23085 3300 450 525 300 4575 215,000 4800 450 735 300 0 17200 6285 23485 3300 450 525 300 4575 220,000 4800 450 735 300 0 17600 6285 23885 3300 450 525 300 4575 225,000 4800 450 735 300 0 18000 6285 24285 3300 450 525 300 4575 230,000 4800 450 735 300 0 18400 6285 24685 3300 450 525 300 4575 235,000 4800 450 735 300 0 18800 6285 25085 3300 450 525 300 4575 240,000 4800 450 735 300 0 19200 6285 25485 3300 450 525 300 4575 245,000 4800 450 735 300 0 19600 6285 25885 3300 450 525 300 4575 250,000 4800 450 735 300 0 20000 6285 26285 3300 450 525 300 4575 255,000 5500 450 833 300 0 20400 7083 27483 3700 450 581 300 5031 260,000 5500 450 833 300 0 20800 7083 27883 3700 450 581 300 5031 265,000 5500 450 833 300 0 21200 7083 28283 3700 450 581 300 5031 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 16
  16. 16. Transfer & Conveyancing Costs UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEES Courtesy Dykes van Heerden Inc - Attorneys and Conveyancers Transfer Costs Bond Costs Purchase Transfer Duty Total Price Bond Conv Misc VAT Deeds Natural Legal Natural Legal Conv Misc VAT Deeds Total Amount Fee Office Person Person Person Person Fee Office 270,000 5500 450 833 300 0 21600 7083 28683 3700 450 581 300 5031 275,000 5500 450 833 300 0 22000 7083 29083 3700 450 581 300 5031 280,000 5500 450 833 300 0 22400 7083 29483 3700 450 581 300 5031 285,000 5500 450 833 300 0 22800 7083 29883 3700 450 581 300 5031 290,000 5500 450 833 300 0 23200 7083 30283 3700 450 581 300 5031 295,000 5500 450 833 300 0 23600 7083 30683 3700 450 581 300 5031 300,000 5500 450 833 300 0 24000 7083 31083 3700 450 581 300 5031 305,000 5900 450 889 400 0 24400 7639 32039 4100 450 637 400 5587 310,000 5900 450 889 400 0 24800 7639 32439 4100 450 637 400 5587 315,000 5900 450 889 400 0 25200 7639 32839 4100 450 637 400 5587 320,000 5900 450 889 400 0 25600 7639 33239 4100 450 637 400 5587 325,000 5900 450 889 400 0 26000 7639 33639 4100 450 637 400 5587 330,000 5900 450 889 400 0 26400 7639 34039 4100 450 637 400 5587 335,000 5900 450 889 400 0 26800 7639 34439 4100 450 637 400 5587 340,000 5900 450 889 400 0 27200 7639 34839 4100 450 637 400 5587 345,000 5900 450 889 400 0 27600 7639 35239 4100 450 637 400 5587 350,000 5900 450 889 400 0 28000 7639 35639 4100 450 637 400 5587 355,000 6400 450 959 400 0 28400 8209 36609 4600 450 707 400 6157 360,000 6400 450 959 400 0 28800 8209 37009 4600 450 707 400 6157 365,000 6400 450 959 400 0 29200 8209 37409 4600 450 707 400 6157 370,000 6400 450 959 400 0 29600 8209 37809 4600 450 707 400 6157 375,000 6400 450 959 400 0 30000 8209 38209 4600 450 707 400 6157 380,000 6400 450 959 400 0 30400 8209 38609 4600 450 707 400 6157 385,000 6400 450 959 400 0 30800 8209 39009 4600 450 707 400 6157 390,000 6400 450 959 400 0 31200 8209 39409 4600 450 707 400 6157 395,000 6400 450 959 400 0 31600 8209 39809 4600 450 707 400 6157 400,000 6400 450 959 400 0 32000 8209 40209 4600 450 707 400 6157 410,000 6900 450 1029 400 0 32800 8779 41579 5000 450 763 400 6613 420,000 6900 450 1029 400 0 33600 8779 42379 5000 450 763 400 6613 430,000 6900 450 1029 400 0 34400 8779 43179 5000 450 763 400 6613 440,000 6900 450 1029 400 0 35200 8779 43979 5000 450 763 400 6613 450,000 6900 450 1029 400 0 36000 8779 44779 5000 450 763 400 6613 460,000 7500 450 1113 400 0 36800 9463 46263 5400 450 819 400 7069 470,000 7500 450 1113 400 0 37600 9463 47063 5400 450 819 400 7069 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 17
  17. 17. Transfer & Conveyancing Costs UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEES Courtesy Dykes van Heerden Inc - Attorneys and Conveyancers Transfer Costs Bond Costs Purchase Transfer Duty Total Price Bond Conv Misc VAT Deeds Natural Legal Natural Legal Conv Misc VAT Deeds Total Amount Fee Office Person Person Person Person Fee Office 480,000 7500 450 1113 400 0 38400 9463 47863 5400 450 819 400 7069 490,000 7500 450 1113 400 0 39200 9463 48663 5400 450 819 400 7069 500,000 7500 450 1113 400 0 40000 9463 49463 5400 450 819 400 7069 510,000 8500 450 1253 500 500 40800 11203 51503 6200 450 931 500 8081 520,000 8500 450 1253 500 1000 41600 11703 52303 6200 450 931 500 8081 530,000 8500 450 1253 500 1500 42400 12203 53103 6200 450 931 500 8081 540,000 8500 450 1253 500 2000 43200 12703 53903 6200 450 931 500 8081 550,000 8500 450 1253 500 2500 44000 13203 54703 6200 450 931 500 8081 560,000 8500 450 1253 500 3000 44800 13703 55503 6200 450 931 500 8081 570,000 8500 450 1253 500 3500 45600 14203 56303 6200 450 931 500 8081 580,000 8500 450 1253 500 4000 46400 14703 57103 6200 450 931 500 8081 590,000 8500 450 1253 500 4500 47200 15203 57903 6200 450 931 500 8081 600,000 8500 450 1253 500 5000 48000 15703 58703 6200 450 931 500 8081 610,000 9500 450 1393 500 5500 48800 17343 60643 7000 450 1043 500 8993 620,000 9500 450 1393 500 6000 49600 17843 61443 7000 450 1043 500 8993 630,000 9500 450 1393 500 6500 50400 18343 62243 7000 450 1043 500 8993 640,000 9500 450 1393 500 7000 51200 18843 63043 7000 450 1043 500 8993 650,000 9500 450 1393 500 7500 52000 19343 63843 7000 450 1043 500 8993 660,000 9500 450 1393 500 8000 52800 19843 64643 7000 450 1043 500 8993 670,000 9500 450 1393 500 8500 53600 20343 65443 7000 450 1043 500 8993 680,000 9500 450 1393 500 9000 54400 20843 66243 7000 450 1043 500 8993 690,000 9500 450 1393 500 9500 55200 21343 67043 7000 450 1043 500 8993 700,000 9500 450 1393 500 10000 56000 21843 67843 7000 450 1043 500 8993 710,000 10500 450 1533 500 10500 56800 23483 69783 7800 450 1155 500 9905 720,000 10500 450 1533 500 11000 57600 23983 70583 7800 450 1155 500 9905 730,000 10500 450 1533 500 11500 58400 24483 71383 7800 450 1155 500 9905 740,000 10500 450 1533 500 12000 59200 24983 72183 7800 450 1155 500 9905 750,000 10500 450 1533 500 12500 60000 25483 72983 7800 450 1155 500 9905 760,000 10500 450 1533 500 13000 60800 25983 73783 7800 450 1155 500 9905 770,000 10500 450 1533 500 13500 61600 26483 74583 7800 450 1155 500 9905 780,000 10500 450 1533 500 14000 62400 26983 75383 7800 450 1155 500 9905 790,000 10500 450 1533 500 14500 63200 27483 76183 7800 450 1155 500 9905 800,000 10500 450 1533 500 15000 64000 27983 76983 7800 450 1155 500 9905 810,000 11500 450 1673 500 15500 64800 29623 78923 8600 450 1267 500 10817 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 18
  18. 18. Transfer & Conveyancing Costs UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEES Courtesy Dykes van Heerden Inc - Attorneys and Conveyancers Transfer Costs Bond Costs Purchase Transfer Duty Total Price Bond Conv Misc VAT Deeds Natural Legal Natural Legal Conv Misc VAT Deeds Total Amount Fee Office Person Person Person Person Fee Office 820,000 11500 450 1673 500 16000 65600 30123 79723 8600 450 1267 500 10817 830,000 11500 450 1673 500 16500 66400 30623 80523 8600 450 1267 500 10817 840,000 11500 450 1673 500 17000 67200 31123 81323 8600 450 1267 500 10817 850,000 11500 450 1673 500 17500 68000 31623 82123 8600 450 1267 500 10817 860,000 11500 450 1673 500 18000 68800 32123 82923 8600 450 1267 500 10817 870,000 11500 450 1673 500 18500 69600 32623 83723 8600 450 1267 500 10817 880,000 11500 450 1673 500 19000 70400 33123 84523 8600 450 1267 500 10817 890,000 11500 450 1673 500 19500 71200 33623 85323 8600 450 1267 500 10817 900,000 11500 450 1673 500 20000 72000 34123 86123 8600 450 1267 500 10817 910,000 12500 450 1813 500 20500 72800 35763 88063 9400 450 1379 500 11729 920,000 12500 450 1813 500 21000 73600 36263 88863 9400 450 1379 500 11729 930,000 12500 450 1813 500 21500 74400 36763 89663 9400 450 1379 500 11729 940,000 12500 450 1813 500 22000 75200 37263 90463 9400 450 1379 500 11729 950,000 12500 450 1813 500 22500 76000 37763 91263 9400 450 1379 500 11729 960,000 12500 450 1813 500 23000 76800 38263 92063 9400 450 1379 500 11729 970,000 12500 450 1813 500 23500 77600 38763 92863 9400 450 1379 500 11729 980,000 12500 450 1813 500 24000 78400 39263 93663 9400 450 1379 500 11729 990,000 12500 450 1813 500 24500 79200 39763 94463 9400 450 1379 500 11729 1,000,000 12500 450 1813 500 25000 80000 40263 95263 9400 450 1379 500 11729 1,100,000 13000 450 1883 600 33000 88000 48933 103933 9800 450 1435 650 12335 1,200,000 13500 450 1953 600 41000 96000 57503 112503 10200 450 1491 650 12791 1,300,000 14000 450 2023 600 49000 104000 66073 121073 10600 450 1547 650 13247 1,400,000 14500 450 2093 600 57000 112000 74643 129643 11000 450 1603 650 13703 1,500,000 15000 450 2163 600 65000 120000 83213 138213 11400 450 1659 650 14159 1,600,000 15500 450 2233 600 73000 128000 91783 146783 11800 450 1715 650 14615 1,700,000 16000 450 2303 600 81000 136000 100353 155353 12200 450 1771 650 15071 1,800,000 16500 450 2373 600 89000 144000 108923 163923 12600 450 1827 650 15527 1,900,000 17000 450 2443 600 97000 152000 117493 172493 13000 450 1883 650 15983 2,000,000 17500 450 2513 600 105000 160000 126063 181063 13400 450 1939 650 16439 2,100,000 18000 450 2583 800 113000 168000 134833 189833 13800 450 1995 1000 17245 2,200,000 18500 450 2653 800 121000 176000 143403 198403 14200 450 2051 1000 17701 2,300,000 19000 450 2723 800 129000 184000 151973 206973 14600 450 2107 1000 18157 2,400,000 19500 450 2793 800 137000 192000 160543 215543 15000 450 2163 1000 18613 2,500,000 20000 450 2863 800 145000 200000 169113 224113 15400 450 2219 1000 19069 Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 19
  19. 19. Transfer & Conveyancing Costs UPDATE OF TRANSFER AND BOND REGISTRATION COSTS, TRANSFER AND BOND FEES Courtesy Dykes van Heerden Inc - Attorneys and Conveyancers Transfer Costs Bond Costs Purchase Transfer Duty Total Price Bond Conv Misc VAT Deeds Natural Legal Natural Legal Conv Misc VAT Deeds Total Amount Fee Office Person Person Person Person Fee Office 2,600,000 20500 450 2933 800 153000 208000 177683 232683 15800 450 2275 1000 19525 2,700,000 21000 450 3003 800 161000 216000 186253 241253 16200 450 2331 1000 19981 2,800,000 21500 450 3073 800 169000 224000 194823 249823 16600 450 2387 1000 20437 2,900,000 22000 450 3143 800 177000 232000 203393 258393 17000 450 2443 1000 20893 3,000,000 22500 450 3213 800 185000 240000 211963 266963 17400 450 2499 1000 21349 3,100,000 23000 450 3283 1000 193000 248000 220733 275733 17800 450 2555 1000 21805 3,200,000 23500 450 3353 1000 201000 256000 229303 284303 18200 450 2611 1000 22261 3,300,000 24000 450 3423 1000 209000 264000 237873 292873 18600 450 2667 1000 22717 3,400,000 24500 450 3493 1000 217000 272000 246443 301443 19000 450 2723 1000 23173 3,500,000 25000 450 3563 1000 225000 280000 255013 310013 19400 450 2779 1000 23629 3,600,000 25500 450 3633 1000 233000 288000 263583 318583 19800 450 2835 1000 24085 3,700,000 26000 450 3703 1000 241000 296000 272153 327153 20200 450 2891 1000 24541 3,800,000 26500 450 3773 1000 249000 304000 280723 335723 20600 450 2947 1000 24997 3,900,000 27000 450 3843 1000 257000 312000 289293 344293 21000 450 3003 1000 25453 4,000,000 27500 450 3913 1000 265000 320000 297863 352863 21400 450 3059 1000 25909 4,100,000 28000 450 3983 1000 273000 328000 306433 361433 21800 450 3115 1000 26365 4,200,000 28500 450 4053 1000 281000 336000 315003 370003 22200 450 3171 1000 26821 4,300,000 29000 450 4123 1000 289000 344000 323573 378573 22600 450 3227 1000 27277 4,400,000 29500 450 4193 1000 297000 352000 332143 387143 23000 450 3283 1000 27733 4,500,000 30000 450 4263 1000 305000 360000 340713 395713 23400 450 3339 1000 28189 5,000,000 32500 450 4613 1000 345000 400000 383563 438563 25400 450 3619 1000 30469 5,500,000 33750 450 4788 1200 385000 440000 425188 480188 26400 450 3759 2000 32609 6,000,000 35000 450 4963 1200 425000 480000 466613 521613 27400 450 3899 2000 33749 6,500,000 36250 450 5138 1200 465000 520000 508038 563038 28400 450 4039 2000 34889 7,000,000 37500 450 5313 1200 505000 560000 549463 604463 29400 450 4179 2000 36029 8,000,000 40000 450 5663 1200 585000 640000 632313 687313 31400 450 4459 2000 38309 9,000,000 42500 450 6013 1200 665000 720000 715163 770163 33400 450 4739 2000 40589 10,000,000 45000 450 6363 1200 745000 800000 798013 853013 35400 450 5019 2000 42869 PROVISION MUST BE MADE FOR THE FOLLOWING AMOUNTS:- * Bank's admin and initiation fees * Levies for up to 12 months (normally 3 months) * Transfer of Exclusive Use Areas such as parking bays, garages etc. in an amount of approximately. R1200.00 per Exclusive Use Area * Insurance Certificate for Sectional Title transfers in the sum of approximately. R750.00 * A charge which varies from attorney to attorney for electronic instructions fee, FICA fee, deeds office searches and other charges in an amount of between R1 000.00 to R2 000.00. Head Office (011) 516-5500 • Bloemfontein (051) 430-7888 • Centurion (012) 663-2637 • Eastern Cape (041) 374-0950 • Germiston (011) 827-5780 • JHB South/East (011) 896-5230 • JHB North/West (011) 476-9002 • KwaZulu Natal (031) 209-8585 • Rustenburg (014) 594-2191 • Vaal (016) 982-4363 • Western Cape (021) 557-9401 • Call Centre 011 438-0000 • 0800 007 111 • www.betterbond.co.za 20
  20. 20. Dykes, van Heerden Inc Attorneys & Conveyancers Contact No: (Gauteng) 011 279 5000; Cape Town & George : 0861 110 210; & Kwazulu Natal : (031) 903-1851 TRANSFER OF PROPERTY FROM A COMPANY, CC OR TRUST INTO THE NAME OF AN INDIVIDUAL WITHOUT PAYING TRANSFER COSTS, DIVIDEND TAX OR CAPITAL GAINS TAX Unfortunately this applies only to certain specified instances and not to all immovable property which is owned by Companies, Close Corporations or Trusts. The following minimum requirements must be present before such a transfer can take place:- For Companies and Close Corporations • The transferee (the Purchaser) must personally and ordinarily have resided in the property since 11 February 2009 and must have used it mainly for domestic purposes and will continue to do so until the date of registration of transfer of the property; • The Purchaser together with his/her spouse must directly hold all the share capital of the Company or the member's interest of the Close Corporation as from the 11th February 2009 to the date of registration of the property into the name of the Purchaser; • The property must be less than 2 hectares in extent; For Trusts • The Purchaser must personally and ordinarily have resided in the property since 11 February 2009 and must have used it mainly for domestic purposes and will continue to do so until the date of registration of transfer of the property; • The property must be less than 2 hectares in extent; • The Purchaser is the person who deposed of that residence to the trust by way of a donation, settlement or other disposition or who financed all the expenditure relating to such Property which was actually incurred by the trust to acquire and to improve the residence. The window of opportunity is available until 31 December 2011. Please note that this is not meant to be a comprehensive exposition on the effects of Section 9(20) of the Transfer Duty Act 1949 and you are strongly urged to take legal advice before making any decisions in regard to the same. On the Conveyancing panels of First National Bank, Absa Bank, Nedbank and Standard Bank operating in the Western Cape, George, Garden Route, Coastal Areas of Kwazulu Natal and Gauteng.
  21. 21. SOLID FOUNDATIONS ARE BUILT ON SOUND RELATIONSHIPS Audit • Advisory • Tax At BDO business is personal. Developing strong, personal relationships is at the forefront of our service approach, and the fact that many of our clients are long- standing is not by accident. By getting to know you personally and understanding your business operations, we are able to offer a tailored solution – each and every time. What sets us apart from our competitors is the way we see, listen and think about our clients. It is this dedication and commitment that helps us deliver distinctively different relationships and results. As a leading mid-size professional services firm, we are capable of competing with the larger firms but are still small enough to care. We are agile, innovative and dynamic, thereby allowing us to adapt to each client’s particular needs. There is a growing need for additional choice in the provision of professional services. BDO is the obvious alternative. We act as auditors and advisers to a number of companies in the real estate sector, and are proud of the clients we work with. If they’ve chosen to place their trust in us and build a solid foundation with BDO as the base, why shouldn’t you? www.bdo.co.za
  22. 22. Financial Information Tax Rates - Individuals - 2011 Taxable Income Rates of Tax R 0 - R140 000 18% of each R 1 R140 001 - R221 000 R 25 200 + 25% of the amount over R140 000 R210 001 - R305 000 R 45 450 + 30% of the amount over R221 000 R290 001 - R431 000 R 70 650 + 35% of the amount over R305 000 R410 001 - R552 000 R114 750 + 38% of the amount over R431 000 R552 001 and above R160 730 + 40% of the amount over R552 000 Tax Rates - Individuals - 2010 Taxable Income Rates of Tax R 0 - R132 000 18% of each R 1 R132 001 - R210 000 R 23 760 + 25% of the amount over R132 000 R210 001 - R290 000 R 43 260 + 30% of the amount over R210 000 R290 001 - R410 000 R 67 260 + 35% of the amount over R290 000 R410 001 - R525 000 R109 260 + 38% of the amount over R410 000 R525 001 and above R152 960 + 40% of the amount over R525 000 Tax Thresholds Individual Taxable income 2011 2010 Under 65 R57 000 R54 200 Over 65 R88 528 R84 200 Tax Rebates Amounts deductible from the tax payable 2011 2010 Primary rebate R10 260 R9 756 Persons over 65 R5 675 R5 400 These rebates are not available to trusts. Tax Payable (Examples) Taxable income - under 65 2010 2011 Saving R100 000 R8 244 R7 740 R504 R250 000 R45 504 R45 504 R1 614 R500 000 R133 704 R130 710 R2 994 R1 000 000 R333 704 R329 670 R3 534 R1 500 000 R533 204 R529 670 R3 534 23
  23. 23. Financial Information Capital Gains Tax (CGT) Effective Date 1 October 2001 (Valuation date) Determination of a capital gain or loss A capital gain or loss is the difference between the base cost of an asset and the proceeds received or deemed to have been received for the asset upon the disposal or the deemed disposal of that asset. Four Cornerstones for Determining a Capital Gain or Loss For CGT purposes, the following must be present: • An asset; • Proceeds or deemed proceeds; • A disposal or deemed disposal; and • A base cost. Determination of base cost Assets acquired before 1 October 2001: The base cost will be the sum of the ‘valuation date value’ and qualifying costs incurred after the valuation date. The valuation date value, depending on the information and records available, can be determined by using anyone of the following methods: a) Market value of the asset on 1 October 2001 b) The time-apportionment base method. c) 20% of the proceeds from the disposal. In the case of assets acquired before 1 October 2001, special rules apply to prevent taxpayers from claiming phantom losses or from being taxed on gains that were made before that date. Assets acquired on or after 1 October 2001: The base costs is the price paid for the asset, plus certain other costs incurred that are directly related to buying it, selling it or improving it, e.g., transfer duties, attorney’s fees, improvement costs, commission donation tax, etc. The following are examples of costs that cannot be added to the base cost: • Expense otherwise allowable as a deduction for income tax purposes • Borrowing costs • Raising fees • Rates and taxes • Insurance In the case of an asset that was subject to a deemed disposal (e.g. asset acquired through donation or inheritance), the base cost in the hands of the recipient will be equal to the deemed proceeds that were used to calculate the gain in the hands of the person who disposed of the asset. 24
  24. 24. Financial Information Basic Framework Disposal or deemed disposal Proceeds or deemed proceeds Deduct base cost Capital gain Capital loss Capital gain Capital loss Less: Exclusions Add: Exclusion Deferral of gain Limitations Sum of all gains or losses reduced by annual exclusion (R17 500 for natural persons and special trusts) Aggregate capital gain Aggregate capital loss Deduct assessed capital loss brought forward from previous year net capital gain Aggregate capital loss X by inclusion rate C/F to next tax year Taxable capital gain Include in taxable income (sec 26A) X by rate of tax Normal income tax payable Inclusion rates Type of taxpayer Inclusion rate Statutory Tax Effective Tax rate (%) rate (%) Individuals 25 0 - 40 4.5 - 10 Companies 50 28 14 Trusts Unit N/A 30 N/A Special 25 0 - 40 4.5 -10 Other 50 40 20 Retirement Funds N/A 0 N/A Life Assurers Ind policyholder fund 25 30 7.5 Co policyholder fund 50 29 14.5 Corporate fund 50 29 14.5 Untaxed policyholder fund 0 0 0 25
  25. 25. Financial Information Death The annual exclusion granted to individuals - R120 000 from 1 March 2007. Liability for CGT • South African residents are liable for CGT on their world wide assets; • Non residents are liable for CGT on the following assets situated in the South Africa: – Immovable property and any interest in or right to that immovable property; and – Assets of a permanent establishment, branch or agency situated in South Africa through which trade is carried on. Withholding Tax Regime for Non-residents With effect from a date to be announced, a capital gain made by a non-resident on the disposal of an immovable property or any right or interest therein is subject to a withholding tax regime. The obligation to withhold the tax is placed upon the purchaser and the withholding rates vary from 5% to 10% depending on the nature of the non-resident seller. No tax has to be withheld in respect of transactions if the total value is less than R2 million. Tax withheld by the purchaser must be paid within certain timeframes depending on details of the transaction and subject to any directive that may have been issued by SARS. Certain obligations and even personal liability for taxes, penalties and interest are placed upon estate agents and conveyancers involved in transactions where the seller is a non-resident. What is an ‘Asset’? It is property of whatever nature, whether movable or immovable, corporeal of incorporeal, including: - Coins mainly made from gold or platinum. - Any right or interest of whatever nature to or in such property, but excluding currency. What is a ‘Disposal’? Means any event, act, forbearance or operation of law, which in terms of the Eighth Schedule and more particularly par 11 is treated or regarded as a disposal and includes: • events that constitute alienation or transfer of ownership of an asset; e.g. sale, donation, cession, expropriation, grant or exchange; • events that result in expiry or abandonment of an asset; e.g. forfeiture, termination, redemption, cancellation, surrender, waiver, discharge, release, renunciation or relinquishment; • scrapping, loss or destruction of an asset • vesting of an interest in a trust asset in a beneficiary; • distribution of an asset by a company to a shareholder; • granting, renewal, extension or exercise of an option; • decrease in value of a person’s interest in a company, trust or partnership through value shifting’ The following are not regarded as disposals: • transfer of an asset as security for debt; • issuing or cancellation of shares by a company; • granting of an option by a company to take up shares or debentures, 26
  26. 26. Financial Information • issuing of units by an equity unit trust or the granting of an option to take up units; • issuing of a bond, debenture, note or borrowing of money from a person; • obtaining of credit from a person; • distribution of trust assets to a beneficiary who has a vested right to the assets; • correction at the deeds office of incorrect property registration; • lending of marketable security in terms of a lending arrangement; Certain events are deemed disposals for CGT purposes whilst certain other events will give rise to simultaneous disposals and acquisitions, eg. on emigration, waiver of debt, death, etc. Exclusions The following are examples of assets excluded from CGT: • Primary residence owned by a natural person or special trust (various special rules apply and the exclusion only applies to the first R1,5 million of the total gain made); It is proposed that in order to reduce the compliance burden of calculating the gain or loss on the sale of a primary residence, the capital gains tax exclusion will henceforth fully apply to a primary residence up to a gross value of R2 million. Primary residences valued above this threshold will remain subject to the R1.5 million CGT exclusion on realised capital gains. • Most personal use assets, i.e. assets not mainly used for purposes of carrying on a trade; • Lump sum benefits from pension, provident or retirement annuity funds; • Proceeds from long term insurance policies (excluding second-hand policies); • Payment as compensation for personal injury, illness or defamation claims; • Gains from gambling, games or competitions authorised and conducted in terms of RSA laws; • Gains made by approved Public Benefit Organisations; • Gains and losses made by unit trust funds; • Gains of up to R750 000 on the disposal of a small business by reason of death, reaching the age of 55 or for reasons of ill-health, provided certain requirements are met; • Donations and bequests to approved Public Benefit Organisations. Roll-over or deferrals In the case of the following, the gain on the disposal of an asset is deferred until a subsequent CGT event: • Involuntary disposals (e.g. fire, theft) provided that the asset is replaced within a year; • Reinvestment in replacement assets that is brought into use within one year; • Transfers between spouses • Disposal of assets using the special corporate rules. Capital losses not taken into account Losses suffered in respect of the following transactions or events cannot be claimed for CGT purposes: • Losses on disposal of intangible assets acquired before 1 October 2001; • Losses in respect of certain forfeited deposits; • Losses suffered on transactions with connected persons are ring-fenced and can only be off-set against gains resulting from dealing with that same connected person; • Losses on disposal of certain shares; • Losses on disposal of options on certain personal use assets. Assets held in foreign currency For definitions of this subject you can contact a tax consultant at BDO. (011) 488-1700. 27
  27. 27. Financial Information The calculation of CGT Consideration on disposal LESS: Base cost Capital gain LESS: Primary/Annual exclusion (if applicable) (17 500)* LESS: Previous assessed capital loss Amount subject to CGT MULTIPLIED BY: Inclusion rate (25%/50%) Amount of the capital gain to be included in the taxpayer’s income Note *: The annual exclusion of R17 500 capital gain or capital loss is granted to individuals and special trusts only. Residence Based Tax. With effect from years of assessments commencing on or after 1 January 2001, all income earned by a South African resident became taxable in South Africa, while non-residents are subject to tax on their South African sourced income. Definition of Resident Natural person The definition of resident provides that in the case of a natural person, a resident is: • Any natural person who is ordinarily resident in the South Africa; or • Any natural person who is not ordinarily resident in South Africa but who: – Is physically present in South Africa for a period exceeding 91 days in aggregate during the current year of assessment and for a period exceeding 91 days in aggregate during each of the prior 5 years of assessment; and – Was physically present in South Africa for a period exceeding 915 days in aggregate during the previous 5 years of assessments. in which case, that person will be a resident with effect from the first day of that relevant year of assessment. Before the introduction of the amendment in the 2005 Revenue Laws Amendment Act, the physical presence test was applied over the previous 3 years. The section was amended to increase the period to 5 years. The amendment comes into operation as follows: • in respect of a person who was a resident (by virtue of the physical presence test) on 28 February 2005, it comes into operation for years of assessment commencing on or after 1 March 2006; and • in respect of any other person, it comes into operation for years of assessment commencing on, or after, March 2005. Where a person has been outside of South Africa for a continuous period of 330 full days after he ceases to be physically present in South Africa, he will be deemed not to have been resident in South Africa from the day that he ceased to be physically present in the country. South African resident employees who render services for any employer outside of South Africa for a period which in aggregate exceeds 183 full days commencing on or ending during a period of assessment, and for a continuous period exceeding 60 full days during such 183 day period, will not be liable for income tax on their remuneration for the period that they are outside South Africa. 28
  28. 28. Financial Information Foreign contract workers in South Africa on contracts of less than 3 full years will be exempt from the definition of resident. Companies A company will be considered to be a resident in South Africa for tax purposes if it is incorporated, established, formed or have their place of effective management in South Africa. Foreign branches of South African companies The taxable income of foreign branches will be subject to South African income tax. Losses in foreign branches cannot be off-set against income from a South African source with effect from years of assessment commencing on or after 1 January 2001 and must be carried forward for off-set against foreign sourced income in the following years. Controlled Foreign Companies (CFC) A Controlled Foreign Company means any foreign company where more than 50% of the total participation rights in that foreign company are held or more than 50% of the voting rights in that foreign company are directly or indirectly exercisable by 1 or more residents. South African residents must impute all income of a CFC in the same ratio as the participation rights of the resident in such CFC, subject to a number of exclusions. Net income of the CFC is defined as the CFC’s taxable income determined as if the CFC is a South African taxpayer. Foreign tax credits A resident is allowed to deduct all foreign taxes paid in respect of foreign income included in his or her taxable income from the tax payable in South Africa on the total amount of such income. Any excess credits may be carried forward. Taxable Income Exempt Income The following income received is exempt from income tax: • Pension received or accrued to a resident from a source outside South Africa subject to any exclusions. • Capital portion of a purchased annuity. • Exemption on remuneration received from foreign services on behalf of an employer. • War and certain disability pensions. • All dividends received (except for dividends distributed by property trusts and specified foreign dividends). • Interest earned by natural persons, up to a maximum of R21 000 per tax year (R30 000 for persons over 65 years of age). Only R3 000 is allowed against foreign interest and foreign dividends. • Interest earned by non-residents who are absent from South Africa for 183 days, or more, per annum and who are not carrying on business in South Africa. • UIF and Workmen’s Compensation benefits. • An amount to a maximum of R30 000 received on termination of employment subject to • the taxpayer having attained 55 years of age; or • termination of employment being the result of ill health or superannuation; or • termination of services resulting from the employer ceasing to carry on trade, or the taxpayer becoming redundant as a consequence of general reduction of personnel. This exemption is not available if the taxpayer was at any time a director of the company of held more than 5% of the shares in the company. 29
  29. 29. Financial Information Deductions - Individuals Medical and disability Expenses Medical Expenditure A number of changes have been made to this section of the legislation, effective 1 March 2006. Qualifying Medical Expenditure includes: • any contributions to a medical scheme made in respect of the taxpayer and his/her spouse and dependants; and • all amounts paid in respect of medical, dental and hospitalisation expenses, payments to pharmacists or medicines obtained on prescription and payments to nursing homes or a registered nurse/midwife for services supplied to the taxpayer, his/her spouse, and his/her children. Qualifying medical expenses do not include expenses that have been recovered from the medial scheme. Only the person that paid the expense can claim it. Deductions allowable are as follows: • In case of taxpayers over the age of 65; There is no limit on the amount of qualifying medical expenditure that may be claimed as a deduction, i.e. all medical expenses paid by the taxpayer can be deducted • In case of taxpayers under the age of 65: The deduction is split into two parts: (a) Basic deduction for medical aid contributions: R670 per month if the contribution is solely for the benefit of the taxpayer; R1 340 per month if the contributions are for the benefit of the taxpayer and 1 dependent. If the taxpayer has more than 1 dependent the limit is increased by R410 for each additional dependent, e.g. if the contributions the taxpayer makes to the fund are in respect of the taxpayer and 3 dependents, the limit is R2 160 per month. (R1 340 +R410 x 2) The basic deduction is reduced by any amount contributed to the medical aid by the employer on behalf of the taxpayer which was not taxed as a fringe benefit. (b) Deduction of other medical expenses: The balance of the medical aid contributions exceeding the basic deduction and all other qualifying medical expenditure paid by the taxpayer, and not recovered from the medical aid are deductible to the extent that they exceed 7.5% of the taxpayer’s taxable income (before medical deduction). Any part of medical aid contributions paid by an employer that is included in the taxpayer’s remuneration as a fringe benefit, shall be deemed to have been contributed by the taxpayer and will therefore qualify for deduction under this part. Physical Disability Expenditure A taxpayer can claim all expenses paid by him/her as a result of his/her physical disability or the physical disability of his/her spouse or his/her child. If the taxpayer or his/her spouse on his/her child is handicapped, all qualifying medical expenses paid by the taxpayer, i.e. not only those paid in respect of the handicapped person, may be claimed. Note: The deduction is claimed by the person who pays the expense. 30
  30. 30. Financial Information Entertainment With effect form 1 March 2002, section 11 (u) was amended to exclude employees and office holders who receive “remuneration” as defined in the Fourth Schedule from claiming entertainment expenditure. This expense may still be claimed by an agent or representative whose remuneration is derived from commission. Donations to Public Benefit Organisations Bona Fide donations made by individuals and companies to certain Public Benefit Organizations (PBO) (including donations to the Government) are deductible and the maximum deduction is calculated at 10% of taxable income before deducting medical expenses. (5% in respect of qualifying contributions during the year of assessment). Home Study Expenses A deduction for home study costs will only be allowed if: • the study is regularly and exclusively used for the purpose of the taxpayer’s trade: and is specifically equipped for such purposes. • in the case of an employee who derives income mainly from commission, his duties are mainly performed other than in an office provided by the employer. • in the case of other employees, his duties are mainly performed in the home study. Contributions to Pension, Retirement Annuity and Provident Funds The following rules are subject to certain reform measures to be implemented in 2007: Pension Funds Any person may claim a deduction of his current contributions to a pension fund. The deduction is limited to the greater of: • R1 750 or • 7,5% of his remuneration derived form retirement funding employment A maximum deduction of R1 800 per annum is allowable for arrear contributions to a pension fund. Retirement Annuity Funds A taxpayer may claim his current contributions to a retirement annuity fund as a deduction which is limited to the greatest of: (i) 15% of income from non-retirement funding employment. (ii) R3 500 less any deduction for current contributions to a pension fund; or (ii) R1 750 The maximum deduction of contributions with regard to the reinstatement of membership of a retirement annuity fund is R1 800 per annum. Provident Funds Contributions to approved provident and benefit funds are not allowed as a deduction from the taxpayer’s income. Employees Tax Employers are required to deduct employees’ tax according to tax deduction tables supplied by the SARS Commissioner on all remuneration paid to employees unless otherwise instructed in terms of a tax deduction directive issued by SARS. 31

×