Securities Transfer Tax (broker exemptions)
Sean Kleynhans The Securities Transfer Tax (‘STT’) Act imposes a tax of 0.25 per cent on purchases of shares, with an exemption for brokers who acquire shares for their own benefit. It is proposed by the Minister in the Budget Speech that the current blanket exemption for brokers will be abolished. Broker transactions, where the beneficial ownership rests with the broker, will be taxed at an appropriate lower rate. This reduced rate, it is proposed, will also cover the purchase of shares utilised in support of derivative hedging. These amendments will come into effect on 1 April 2013. It is proposed that government will also investigate the feasibility of including derivatives in the STT net.
