Tax and SARS knowledge base
When are listed and unlisted Securities Transfer Tax payments due?
When are listed and unlisted Securities Transfer Tax payments due?
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Direct answer
SARS says Securities Transfer Tax on listed securities is payable by the 14th day of the month following the month in which the listed transfers occurred. For unlisted securities, SARS says STT is payable within two months from the end of the month in which the transfer took place. Classify the transaction correctly before applying either deadline.
What this means in practice
Deadline errors often begin with classification errors. Listed securities can be transferred through systems and intermediaries that do not resemble a private share sale. An unlisted-company share transfer may involve a share register, directors, a company secretary and a signed agreement. The same label, "share transfer", is not enough to choose a payment workflow.
Create a timeline as soon as the transaction is proposed. It should record the security type, agreement date, transfer or settlement date, parties, consideration, accountable entity, return route, due date and proof of completion. Have an informed reviewer check the timeline against the current SARS source before the payment is authorised.
Step-by-step
- Obtain the executed or proposed transaction documents and identify the security precisely. Record whether it is listed or unlisted, rather than relying on informal descriptions.
- Identify the entity or intermediary responsible for the applicable SARS process. In a group or corporate-action transaction, do not assume that the buyer, seller and company have identical administrative obligations.
- Read the current SARS Securities Transfer Tax page and detailed guide for the correct category. Record the listed deadline as the 14th day of the next month, or the unlisted deadline as two months from the end of the transfer month, with the source and date checked.
- Prepare the required declaration and supporting information early. Reconcile names, security quantities, dates and consideration to the documents.
- Submit through the correct electronic process and check the assessment or payment instruction generated. Confirm the tax period and entity before releasing a payment.
- Obtain bank authorisation and retain the payment proof. A draft declaration or created payment instruction is not evidence that the deadline was met.
- File the completed return, acknowledgement, proof of payment and source documents together. Record any SARS reference or query for future audit access.
Documents and records to keep
- Share purchase, subscription or transfer agreement.
- Share-register, broker, settlement or central-securities-depository evidence.
- STT classification analysis and current SARS deadline check.
- Declaration, assessment, eFiling confirmation and payment proof.
Important limits and exceptions
The stated timing rule must be applied to the actual listed or unlisted route. This article does not determine whether the transfer falls within STT, how value is calculated or whether an exemption applies. Those are separate questions that can materially change the compliance result.
When to get tailored advice
Seek advice for a share buy-back, group reorganisation, off-market listed transfer, nominee, unpriced transaction, non-resident party, late payment or uncertain listing status. Obtain help promptly if an eFiling process does not match the transaction documents.