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The stamp duty payable
in a conveyancing transaction is usually paid by the
purchaser. Where the transaction involves a residential
property, the ad valorem stamp duty will normally be
paid upon the purchaser signing the formal agreement
for sale and purchase. In relation to non-residential
property, the stamp duty will in practice be paid upon
execution of the assignment upon completion.
| 1. |
In addition to
the agreement for sale and purchase, stamp duty
is payable on the following documents:
| a. |
Assignment for a residential
property – if ad valorem stamp duty
has been paid on the agreement, the stamp
duty payable on the assignment is $100.
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| b. |
Where a residential property transaction has more than one agreement for sale and purchase – If the date of the provisional agreement and the date of the formal agreement are more than 14 days apart, besides ad valorem duty is payable for one of the agreements, the other agreement is subject to $100 stamp duty. |
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| c. |
Deed of Gift – where
an owner assigns his property to another party
free of any consideration (that is, by way
of gift), stamp duty will still be payable
on the market value of the property at the
time of the gift as assessed by the Rating
and Valuation Department. |
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| d. |
Nomination in respect of
a residential property – if a purchaser,
after signing an agreement for sale and purchase
with a vendor, enters into a nomination requesting
the vendor to assign the property to the nominee
stated in the nomination, ad valorem stamp
duty will be payable on the nomination as
on an agreement for sale and purchase of the
property, unless the nominee is a trustee,
parent, spouse or child of the purchaser. |
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| 2. |
With effect from 28 February 2007, the rate of ad valorem
stamp duty is as shown below:
| Price |
Stamp duty |
|
---------------- |
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| 1. |
$2,000,000 or below |
$100 |
| 2. |
$2,000,001 to $2,351,760 |
$100 + 10% of excess in price
over $2,000,000 |
| 3. |
$2,351,761 to $3,000,000 |
1.5% of price |
| 4. |
$3,000,001 to $3,290,320 |
$45,000 + 10% of excess in
price over $3,000,000 |
| 5. |
$3,290,321 to $4,000,000 |
2.25% of price |
| 6. |
$4,000,001 to $4,428,570 |
$90,000 + 10% of excess in
price over $4,000,000 |
| 7. |
$4,428,571 to $6,000,000 |
3% of price |
| 8. |
$6,000,001 to $6,720,000 |
$180,000 + 10% of excess in
price over $6,000,000 |
| 9. |
Over $6,720,000 |
3.75% of price |
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Example 1 |
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| Price: $3,150,000.00, the stamp duty payable will be as follows: |
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| $45,000.00 + 10% x ($3,150,000.00 - $3,000,000.00) = $60,000.00 |
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| 3. |
Deferring payment of stamp
duty:
With effect from 1 April 1999, an application
may be made to the Stamp Office to defer the payment
of stamp duty. The following conditions have to
be satisfied for deferment of payment :
| I. |
An application has to be made
to the Collector of Stamp Revenue ("the
collector") in the specified form within
30 days of signing the chargeable agreement
for sale ("the agreement"); |
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| II. |
Proof has to be produced
to the satisfaction of the collector that:
| a. |
The vendor under
the agreement is registered in the
Land Registry as the owner of the
property; or |
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| b. |
All instrument(s)
through which the vendor acquires
his rights and interests in the property
from the registered owner (that is,
if the purchaser purchases from a
confirmor, the agreement for sale
and purchase between the registered
owner and the confirmor) is/are:
| i. |
duly stamped; or |
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| ii. |
secured to the
satisfaction of the collector
by securities given for the payment
of the stamp duty chargeable on
the instruments in so far as it
is/they are not duly stamped.
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If the application is approved, the
time for payment of stamp duty on the agreement
will be as follows:
| I. |
Where the purchaser does not
sub-sell before completion, payment of stamp
duty can be delayed to within 30 days of the
execution of the assignment of the property
on completion. |
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| II. |
Where the purchaser sub-sells
or disposes of the property before completion,
payment of stamp duty can be delayed to
within seven days of the date of signing
the agreement to sub-sell/dispose of the
property.
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If the application is not approved, the collector
will notify the applicant (or his solicitors)
and require the applicant to pay the stamp duty
payable. |
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| 4. |
Time for payment of stamp duty:
If there is no approval for deferment of payment of stamp duty, the
time for payment of stamp duty will be as follows:
| I. |
If the formal agreement for
sale and purchase of residential property
is signed within 14 days of the signing of the provisional
agreement for sale and purchase, stamp duty has
to be paid within 30 days of the signing of
the formal agreement. |
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| II. |
If the formal agreement is
signed more than 14 days after the signing
of the provisional agreement, stamp duty has
to be paid within 30 days of the signing of
the provisional agreement. |
The time for payment
of stamp duty on assignment is within 30 days after the date of execution of
the assignment. |
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