We confirm that from the 1st September 2007 the above section came into operation making it imperative to determine whether the Seller is a non-resident when the Seller sells his immovable property to the value of R2 000 000,00 or more.
In the event of the Purchaser knowing or reasonably should have known, there is an onus on the Purchaser to pay to SARS the following percentage of the purchase price:
5% of the amount so payable when the Seller is a natural person; or
7.5% of the amount so payable when the Seller is a company; or
10% of the amount so payable when the Seller is a Trust.
The amount to be withheld is an advance payment in respect of that Seller's liability for normal tax for the year of assessment during which that property is disposed of by the Seller.
There is an onus on the estate agents and conveyancer, should they have known or reasonably have known that the Seller is a non-resident, to inform the Purchaser in writing thereof. Should the estate agent or conveyancer have known or reasonably should have known that the Seller is a non-resident, they can be penalised by SARS up to the maximum amount of the fee that they have earned on the transaction.
Should the Seller disagree with the above, he may obtain a directive from SARS confirming that it is not necessary to withhold the abovementioned amount.
Should you have any further queries about the above, please feel free to contact me.
Regards, Jacques van der Merwe De Abreu & Cohen Inc. Unit 2, 42 Blaauwberg Road, Table View, 7441 P O Box 11449, Bloubergrant, 7443, Docex 162, Cape Town Tel: +27 21 5576578 Cell: 082 4906880 Direct Fax: 086 5124235 Fax: +27 21 5576858