Lease or agreement of lease (including any instrument intended or operating as a lease or sub-lease or as an agreement to let or sub-let) whereby immovable property is let for a period as contemplated in section 22(2) which is longer than five years, whether with or without other assets or rights, provided transfer duty is not chargeable in respect of such lease or agreement:
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| (1) | In respect of a lease or agreement, an amount of duty calculated on a sum equal to the aggregate amount of rent payable (exclusive of value-added tax) in respect of the period for which the lease or agreement is required to be stamped as provided in section 22 of this Act, plus the amount of any other consideration whatsoever, the amount of which is quantifiable at the time of execution of that lease or agreement (excluding the duty payable under this item and exclusive of value-added-tax) due or payable in respect or by virtue of that lease or agreement at a rate of 0,5 per cent of the quantifiable amount of the lease: Provided— |
| (i) | that where an amount of consideration in respect of a lease or agreement is not quantifiable at the time of execution of the lease, the duty calculated at a rate of 0,5 per cent on the sum of the amounts of that consideration which became quantifiable (exclusive of value-added tax) during any year of assessment, as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), of any lessor who is a taxpayer, as defined in section 1 of the Income Tax Act, 1962, or in the 12 months ending on the last day of February each year in the case of any other lessors; and |
| (ii) | the duty payable under this Item, calculated on the aggregate amount of rent and any other consideration payable under any lease or agreement shall not exceed 8 per cent of the value of the property in relation to that lease or agreement, which value shall be determined in accordance with the provisions of sections 5, 6, 7 and 8 of the Transfer Duty Act, 1949 (Act No. 40 of 1949). |
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| (2) | Notwithstanding anything to the contrary in this Act contained, for the purposes of this Item an instrument which, if signed by the parties thereto, would constitute a lease or agreement as aforesaid or a continuance, renewal or extension thereof, shall, if signed by the lessee, be deemed to have been executed on the date on which it was so signed by the lessee, unless such instrument has within three months after that date also been signed by the lessor. |
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| (1) | *[deleted by Revenue Laws Amendment Act No. 32 of 2004] |
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Notwithstanding anything to the contrary in this Act contained, for the purposes of this Item any instrument which, if signed by the parties thereto, would constitute a lease or agreement of lease as aforesaid or a continuance, renewal or extension thereof, shall, if signed by the lessee, be deemed to have been executed on the date on which it was so signed by the lessee, unless such instrument has within three months after that date also been signed by the lessor.
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Exemption from duty under paragraph (1)
| (a) | For the purposes of this Item, no duty shall be payable in the event that the duty calculated on a lease or agreement of lease does not in aggregate exceed R500 over the period of the lease: Provided that this exemption shall not apply where the total consideration payable in respect of a lease or agreement of lease is not quantifiable at the time of execution of that lease. |
| (b) | For the purposes of this Item, where the total consideration payable in respect of a lease or agreement of lease is not quantifiable at the time of execution of that lease, no duty shall be payable in the event that the duty calculated on a lease or agreement of lease on the amount of consideration that has become quantifiable— |
| (i) | during any "year of assessment" as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), of any lessor who is a "taxpayer" as defined in that Act; or |
| (ii) | in the 12 months ending on the last day of February each year in the case of any other lessor, |
if that amount does not in aggregate exceed R500 during such year of assessment, or 12 month period, whichever is applicable.
Provided the duty payable under this Item, calculated on the aggregate amount of rent and any other consideration payable under any lease or agreement of lease shall not exceed 10 per cent of the value of the property in relation to that lease or agreement of lease, which value shall be determined in accordance with the provisions of sections 5, 6, 7 and 8 of the Transfer Duty Act, 1949 (Act No. 40 of 1949).
