|
Details of Tax Measures and Rebates
Reduction in Stamp Duty Rates
Explanatory note
Measure:
To reduce the transaction costs for businesses
and individuals when they enter into agreements where
stamp duty is payable, the government has decided to
reduce stamp duty rates by 30% on all instruments. The
new rates will apply to chargeable instruments executed
on or after 13th October and will expire on 31st Dec
2002.
This will cost the government an estimated
$290 million.
Illustration:
Stamp duty payable for purchasing a property BEFORE
13th Oct 2001.
Example: Price of property is $500,000
|
| 1%
of |
$180,000 |
= |
$1,800 |
| 2%
of |
Next
$180,000 |
= |
$3,600 |
| 3%
of |
Remaining
$140,000 |
= |
$4,200 |
| |
|
|
|
| Stamp
Duty Payable |
= |
$9,600 |
|
|
|
Stamp duty payable for purchasing a property BETWEEN 13th
Oct 01 AND 31st Dec 2002
Example: Price of property is $500,000
Stamp duty payable:
|
| 1%
* 0.7 of |
$180,000 |
= |
$1,260 |
| 2%
* 0.7 of |
Next
$180,000 |
= |
$2,520 |
| 3%
* 0.7 of |
Remaining
$140,000 |
= |
$2,940 |
| |
|
|
|
| Stamp
Duty Payable |
= |
$6,720 |
|
|
|
| Savings
from a 30% reduction in rate |
= |
$2,880 |
Additional Details:
The reduction in stamp duty rates will also apply to
other chargeable instruments including those relating
to transfer of stocks and shares, lease and mortgage
agreements.
|
|
