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Author Topic: Securities Transfer Tax....?  (Read 5523 times)

Fawkes85

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Securities Transfer Tax....?
« on: October 07, 2015, 02:31:35 pm »
Can anyone explain to me what that is? I don't understand how it works. 9 out of 10 times when I buy or sell shares I don't pay STT. But then that 1 out of 10 times comes along and then I pay STT which can make up 25% of my fees at times. What is it and why do I only pay it sometimes?
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gcr

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Re: Securities Transfer Tax....?
« Reply #1 on: October 07, 2015, 03:59:35 pm »
Are you buying your shares and then retaining certain of these purchases in a nominees account and others having registered in your own name?
The charges I pay are:-
Brokerage
Strate Settlement Costs
Investor protection levy
Vat
Securities Tax

All my shares are held in a nominees account
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Orca

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Re: Securities Transfer Tax....?
« Reply #2 on: October 07, 2015, 05:37:14 pm »
I think it is 0,25% of the transaction and amounts under R100 are disregarded but I am not 100% sure.
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Fawkes85

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Re: Securities Transfer Tax....?
« Reply #3 on: October 07, 2015, 06:46:56 pm »
Quote from: gcr on October 07, 2015, 03:59:35 pm
Are you buying your shares and then retaining certain of these purchases in a nominees account and others having registered in your own name?


All my shares are bought and retained in my FNB Share Investor account. I had to pay STT for all my RPL and SNV trades but for none of my DIVTRX and TEX trades. I do not understand how STT works and why I pay it for some trades and not for others. Makes no sense.
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JohnnyH

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Re: Securities Transfer Tax....?
« Reply #4 on: October 07, 2015, 09:06:25 pm »
From what I understand, you pay STT for all share purchases, but not for any ETF transactions. Reason being, when you buy a share, it is registered in your name ( I always see this as some sort of admin fee ), when you buy ETFs, you only buy "units of a fund", so no admin registering it to your name etc.

It might not be 100%, but I think that is the general idea.
J
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