Paying Stamp Duty
Stamp Duty is a tax that you must pay when carrying out certain transactions that require legal documents. Deeds of Conveyance, Deeds of Gift, Deeds of Mortgage, Release of Mortgage Loan, Release of Life Insurance Policies, Transfer of Shares, Deeds of Lease, Deed Polls, Bonds, and any other deeds, require “stamping”, which means you must pay duty.
When do I need to pay Stamp Duty?
You must pay Stamp Duty when buying real estate or a home, acquiring shares, seeking a mortgage, or conducting other financial transactions. The attorney, company or broker that is involved in these transactions can tell you which documents require stamping.
How do I pay?
The attorney or the company transacting the business usually prepares the documents that require stamping and will make payment on your behalf. The documents are presented to the Inland Revenue Division by the attorney or company for stamping together with the necessary fees. The documents are processed and stamped accordingly.
How much does it cost?
The amount of stamp duty is usually a percentage of the value of the transaction you are undertaking. Please see below for detailed information on stamp duty rates.
RESIDENTIAL PROPERTY (INCLUDING DWELLING HOUSE)
The sale or other disposal of residential properties valued at $850,000 or less SHALL BE EXEMPT from stamp duty.
The following rates of stamp duty SHALL BE payable on the sale or other disposal of residential properties (with dwelling house) whose values exceed $850,000:
For every dollar of the first $400,000 in excess of $850,000 – 3%
For every dollar of the next $500,000 – 5%
For every dollar thereafter – 7.5%
RESIDENTIAL PROPERTY (LAND ONLY)
The sale or disposal of residential land valued at $450,000 or less shall be EXEMPT from Stamp Duty.
For every dollar of the first $200,000 in excess of $450,000 – 2%
For every dollar of the next $200,000 in excess of $650,000 – 5%
For every dollar thereafter in excess of $850,000 – 7%
Land, Commercial, Investment Property
|Under $300,000||– 2% on the total|
|$300,001 to $400,000||– 5% on the total|
|Over $400,000||– 7% on the total|