Stamp duty
Encyclopedia
Stamp duty is a tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

 that is levied on documents. Historically, this included the majority of legal documents such as cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...

s, receipts, military commissions, marriage licences and land transactions. A physical stamp (a revenue stamp
Revenue stamp
A revenue stamp, tax stamp or fiscal stamp is a adhesive label used to collect taxes or fees on documents, tobacco, alcoholic drinks, drugs and medicines, playing cards, hunting licenses, firearm registration, and many other things...

) had to be attached to or impressed
Impressed duty stamp
An Impressed Duty Stamp is a form of revenue stamp created by impressing a stamp on to a document using a metal die to show that the required duty had been paid. The stamps have been used to collect a wide variety of taxes and duties, including stamp duty and duties on alcohol, financial...

 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.

Australia

The federal government of Australia does not levy stamp duty. However, stamp duties are levied by the Australian states
States and territories of Australia
The Commonwealth of Australia is a union of six states and various territories. The Australian mainland is made up of five states and three territories, with the sixth state of Tasmania being made up of islands. In addition there are six island territories, known as external territories, and a...

 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
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...

 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.

Hong Kong

According to Schedule 1 of Hong Kong Stamp Duty Ordinance Cap.117
Hong Kong Stamp Duty Ordinance Cap.117
The Stamp Duty Ordinance is one of Hong Kong Ordinances which regulates the law of stamp duty.-The Most Used Sections:Section 2 - Interpretation The Stamp Duty Ordinance is one of Hong Kong Ordinances which regulates the law of stamp duty.-The Most Used Sections:Section 2 - Interpretation The Stamp...

 (SDO), Stamp duty applies to some legal binding documents as classified into 4 heads:
  • Head 1: All sale or lease transactions in Hong Kong
    Hong Kong
    Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

     immovable property
    Immovable property
    Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it - property that is fixed to the Earth, such as land or a house. In the United States it is also commercially and legally known as real estate and in Britain as property...

    .
  • Head 2: The transfer of Hong Kong Stock.
  • Head 3: All Hong Kong bearer instruments.
  • Head 4: Any duplicates and counterparts of the above documents.


One of examples is share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...

s of companies which are either incorporated
Incorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...

 in Hong Kong or listed on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...

. Other than the said shares, HK Stock is defined as shares and marketable securities, units in unit trust
Unit trust
A unit trust is a form of collective investment constituted under a trust deed.Found in Australia, Ireland, the Isle of Man, Jersey, New Zealand, South Africa, Singapore, Malaysia and the UK, unit trusts offer access to a wide range of securities....

s, 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$
Hong Kong dollar
The Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...

6 million.

References

Singapore

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
Singapore Exchange
Singapore Exchange Limited is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges FederationSingapore Exchange...

, are subject to stamp duty.

Applicable rates and more information can be obtained from Inland Revenue Authority of Singapore
Inland Revenue Authority of Singapore
The Inland Revenue Authority of Singapore is a statutory board under the Ministry of Finance of the Singapore Government in charge of tax collection.-History:...

. Legislation covering Singapore Stamp Duties are found in the Stamp Duties Act.

Republic of Ireland

In the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...

 stamp duties are levied on various items including (but not limited to) credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...

s, debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...

s, ATM card
ATM card
An ATM card is a card issued by a bank, credit union or building society that can be used at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks.Some ATM cards can also be used:* at a branch, as identification for in-person...

s, cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...

s, property transfers, and certain court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...

 documents.

United Kingdom

"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). "Stamp Duty Land Tax" (SDLT), a new transfer tax
Transfer tax
A transfer tax is a tax on the passing of title to property from one person to another.In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property. This kind of tax is typically imposed where there is a legal requirement for registration of...

 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
Transfer tax
A transfer tax is a tax on the passing of title to property from one person to another.In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property. This kind of tax is typically imposed where there is a legal requirement for registration of...

 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.

United States

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
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...

. Typically when real estate is transferred or sold, a real estate transfer tax
Transfer tax
A transfer tax is a tax on the passing of title to property from one person to another.In a narrow legal sense, a transfer tax is essentially a transaction fee imposed on the transfer of title to property. This kind of tax is typically imposed where there is a legal requirement for registration of...

 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.

Sweden

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.
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