2 April 2009
The South African Revenue Service (Sars) has abolished the Stamp Duty Act (77 of 1968) with effect from midnight on 31 March 2009.
The abolition forms part of ongoing efforts to reduce the administrative burden on taxpayers and simplify South Africa’s tax system.
“The scrapping of the Act follows the whittling down of the scope of stamp duties over the past few years until only property leases of over five years required stamp duties to be paid,” Sars said in a statement this week.
“This is now done away with from 1 April 2009.”
The scrapping of the Act is not retrospective, however, and taxpayers remain liable for stamp duties due up to 31 march 2009, and any outstanding stamp duties must still be paid.
“Adhesive revenue stamps will only be demonetorised from 1 November 2009, to allow time for other government departments which utilise these to introduce alternative measures,” Sars said. “After that date they may not be used for any purpose.”
Holders of existing stocks of revenue stamps have until 31 October 2010 to claim a refund for the stamps from their nearest Sars branch.
Revenue franking machines will also be finally scrapped on 1 November 2009, and any value remaining on these machines can be refunded at any Sars branch until 31 October 2010.
Procedures for the claiming of refunds were published on 27 March 2009 in the Government Gazette: see Sars’ stamp duty web page.
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