Stamp duty
Stamp duty is a form of tax that is levied on documents. Historically, a physical stamp (a tax stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document became legally effective. More modern versions of the tax no longer require a physical stamp.
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Australia
The Federal Australian government does not levy stamp duty. However, stamp duty is levied by the States and territories of Australia/states on various instruments (i.e. 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, it was announced by the Treasurers of various States or Territories that they will phase out a number of duties over the course of the next 5 years. However, duty on transfer of ownership in land will remain.
Hong Kong
According to the Schedule 1 of Hong Kong Stamp Duty Ordinance Cap.117 (in short, SDO), Stamp duty is charged on some legal binding documents which are classified into 4 heads:
- Head 1: All transactions of sale or lease of interests in Hong Kong immovable property.
- Head 2: The transfer of #Head 2: Hong Kong Stock/Hong Kong Stock.
- Head 3: All Hong Kong bearer instruments.
- Head 4: Any duplicates and counterparts of the above documents.
Head 2: Hong Kong Stock
One of examples is share (finance)/shares of companies which are either incorporation (business)/incorporated in Hong Kong or listed on the Hong Kong Stock Exchange.
Other than the said shares, the 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 Computation
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 Hong Kong dollar/HK$6 million.
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Ireland
Stamp duty is charged on various items including (but not limited to)
- Credit/ Debit Cards
- ATM Cards
- Property
United Kingdom
- Refer to Stamp duty in the United Kingdom
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. 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.
