Acceptance of Namibian Property Valuation & Estate Duty Exemptions

Acceptance of Namibian Property Valuation & Estate Duty Exemptions

• 12 March 2025
• Administration of Estates
• The Tax Faculty Tax Specialist

This article is based on tax law for the year ending 28 February 2026.

Question:

Could you please clarify what SARS would accept for the valuation of properties in Namibia? Would a Rev246 completed by a sworn valuator be sufficient? I emailed the SARS Estate Duty department but have not received a response.

Additionally, I want to confirm my understanding of the estate duty exemptions:

• No Section 9HA(2) exemption will be granted if the wife was not a South African resident—correct?
• However, Section 4(q) seems to apply regardless of the wife's current residency status, as long as she was married under South African legislation with an SA marriage certificate. Am I interpreting this correctly?

Answer:

1. The Problem / Facts

To ensure compliance with South African tax laws, clarity is needed on the following issues:

• What documentation SARS accepts for property valuation in Namibia.
• Whether the Section 9HA(2) exemption applies if the deceased's spouse is not a South African resident.
• Whether Section 4(q) deductions are applicable, given the spouse's residency status, provided the marriage complies with South African legal requirements.

2. Applicable Law

• Income Tax Act, 58 of 1962, Section 9HA(2)
• Estate Duty Act No. 45 of 1955, Section 4(q)

3. Application of the Law to the Facts

• Property Valuation in Namibia

  • SARS requires accurate property valuations for estate duty purposes, including assets located in Namibia. For Namibian properties, a valuation should be conducted by a qualified and accredited professional. The Rev246 form, completed by a sworn valuator, is typically accepted as formal documentation. While the estate department has not explicitly confirmed this, using a sworn valuator familiar with cross-border valuation standards (between South Africa and Namibia) is generally advisable. The key requirement is that the valuator holds recognized authority and expertise in property assessments.

• Section 9HA(2) Exemption and Residency

  • Section 9HA(2) provides for a roll-over exemption on estate duty when assets are transferred to a surviving spouse, but only if the spouse is a South African tax resident. If the deceased’s wife was not a resident at the relevant time, she would likely not qualify for the exemption.

• Section 4(q) Deduction Applicability

  • Section 4(q) of the Estate Duty Act allows for deductions on property transferred to a surviving spouse, regardless of the spouse’s residency, as long as the marriage is recognized under South African law. Since the couple’s marriage is certified under South African legislation, the deduction should apply, even if the spouse does not meet South African residency requirements.

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