Securities Transfer Tax Act, 2007 (Act No. 25 of 2007)

8A. Sharia compliant financing arrangements

Purchase

(1)	In the case of any murabaha as defined in section 24JA(1) of the Income Tax Act, 1962 (Act No. 58 of 1962)—

(a)	the financier shall be deemed not to have acquired any beneficial ownership of the security under the sharia arrangement; and

(b)	the client shall be deemed to have acquired beneficial ownership of the security from the seller—

(i)	for an amount equal to the consideration paid by the financier to the seller; and

(ii)	at such time as the financier acquired the beneficial ownership of the security from the seller by virtue of the transaction between the seller and the financier.