Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp (a revenue stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp.
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The federal government of Australia does not levy stamp duty. However, stamp duties are levied by the Australian states on various instruments (written documents) and transactions. The rates of stamp duty vary from state to state, as do the nature of the instruments or transactions subject to duty. Some jurisdictions no longer require a physical document to attract what is now often referred to as "transaction duty".
Major forms of duty include the transfer duty on the sale of land, businesses, shares and other forms of dutiable property; mortgage duty; lease duty and duty on the hire of goods. Rebates or exemptions are available from transfer duty and mortgage duty for those purchasing their first home.
On 20 April 2005, the treasurers of various states and territories announced that they would phase out a number of duties over the following five years. However, duty on land ownership transfers would remain.
According to Schedule 1 of Hong Kong Stamp Duty Ordinance Cap.117 (SDO), Stamp duty applies to some legal binding documents as classified into 4 heads:
One of examples is shares of companies which are either incorporated in Hong Kong or listed on the Hong Kong Stock Exchange. Other than the said shares, HK Stock is defined as shares and marketable securities, units in unit trusts, and rights to subscribe for or to be allotted stock. Stamp duty on a conveyance on sale of land is charged at progressive rates ranging from 0.75% to 3.75% of the amount of consideration. The maximum rate of 3.75% applies where the consideration exceeds HK$6 million.
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From 1998, stamp duty in Singapore only applies to documents relating to immovable property, stocks and shares. Purchases of Singapore property or shares traded on the Singapore Exchange, are subject to stamp duty.
Applicable rates and more information can be obtained from Inland Revenue Authority of Singapore. Legislation covering Singapore Stamp Duties are found in the Stamp Duties Act.[1]
In the Republic of Ireland stamp duties are levied on various items including (but not limited to) credit cards, debit cards, ATM cards, cheques, property transfers, and certain court documents.
"Stamp Duty Reserve Tax" (SDRT) was introduced on agreements to transfer certain shares and other securities in 1986, albeit with a relief for intermediaries (such as market makers and large banks that are members of a qualifying exchange).[2] "Stamp Duty Land Tax" (SDLT), a new transfer tax derived from stamp duty, was introduced for land and property transactions from 1 December 2003. SDLT is not a stamp duty, but a form of self-assessed transfer tax charged on "land transactions".
On March 24, 2010, Chancellor Alistair Darling introduced two significant changes to UK stamp duty. For first-time buyers purchasing a property under £250,000, stamp duty was abolished for the next two years. This measure was offset by a rise from 4% to 5% in stamp duty on properties costing more than £1 million.[3]
Although the federal government formerly imposed various documentary stamp taxes on deeds, notes and other transactional documents, in modern times such taxes are only imposed by states. Typically when real estate is transferred or sold, a real estate transfer tax will be collected at the time of registration of the deed in the public records. In addition, many states impose a tax on mortgages or other instruments securing loans against real property. This tax, known variously as a mortgage tax, intangibles tax, or documentary stamp tax, is also usually collected at the time of registration of the mortgage or deed of trust with the recording authority.
Swedish law applies a stamp duty on property deeds, at 1.5% of the purchase value. In addition, a stamp duty of 2.0% is levied on new mortgage securities ("pantbrev") for properties.