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1
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To expand
the scope of relief from ad valorem
stamp duties provided under Section
15 of the Stamp Duties Act to:
- Business Trusts
- Transfer of Mortgages
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Section
15 of the Stamp Duties Act prescribes
the conditions that have to be fulfilled
to qualify for relief from ad valorem
stamp duties, in respect of chargeable
instruments executed for the following:
- the transfer of the undertaking
or shares in respect of a scheme
for the reconstruction of any company
or companies, or the amalgamation
of companies;
- the transfer, conveyance or assignment
of any beneficial interest in any
asset between associated companies;
or
- the conversion of a firm to
a limited liability partnership
under section 20 of the Limited
Liability Partnerships Act 2005.
a. A business
trust is a form of business vehicle
like a company and is subject to the
same income tax rules as companies.
Section 15 of the Stamp Duties Act will
be amended to allow business trusts
to qualify for relief.
b. The types of chargeable instruments
qualifying for Section 15 relief from
ad valorem stamp duties will be expanded
to include mortgages so as to facilitate
corporate restructuring among institutions
whose assets include mortgages. |
Section 15
[Clause 2]
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Clause 2 amends section 15 to —
- take into account the removal
of Article 3(b) from the First Schedule
vide G.N. No. S192/2003;
- extend the ad valorem duty relief
under that section to transfers
of mortgages and debentures by including
a reference to Article 9(c) of the
First Schedule;
- extend the ad valorem duty relief
under that section to business trusts
registered under the Business Trusts
Act 2004 (Act 30 of 2004).
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| 2 |
To repeal seller’s
Stamp Duty on sale of residential properties
within three years of purchase |
The seller's stamp
duty chargeable under Sections 22A &
22B on the sale of residential properties
within three years of purchase was introduced
in 1996 to curb property speculation
and to stabilise the property market.
It was suspended indefinitely in November
1997 when the property market cooled
down. The abolition of the seller’s
stamp duty was announced in Budget 2003.
The Stamp Duties Act will be amended
to repeal Sections 22A and 22B. |
Section 22A and 22B
[Clause 3]
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Clause 3 repeals
sections 22A and 22B relating to ad
valorem duty payable by a vendor on
the conveyance on sale of certain properties |
| 3 |
To require companies
amalgamating under the new section 215
of the Companies Act to pay ad valorem
stamp duties. |
Companies amalgamating
under the new section 215 of the Companies
Act will be required to pay ad valorem
stamp duties, but would qualify for
relief from ad valorem stamp duty under
Section 15 of the Stamp Duties Act only
if they meet the prescribed conditions.
This change is intended to safeguard
stamp duty revenue collection. |
New Section 32C
[Clause 4]
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Clause 4 introduces
a new Section 32C to provide that every
notice of amalgamation issued by the
Registrar under section 215F of the
Companies Act upon amalgamation of companies,
is treated as a conveyance of sale for
which stamp duties will be imposed on
the chargeable properties. |
| 4 |
To grant stamp
duty exemption to transfers of foreign
stocks by way of gift |
Currently, transfers
on sale of foreign stocks are exempted
from stamp duties under Section 36(d)
of the Stamp Duties Act. However, if
the transfer of foreign stocks was meant
as a gift, it will not be able enjoy
the stamp duty exemption as the Stamp
Duties Act states that the exemption
is only given to transfers “on sale”.
The Stamp Duties Act will be amended
to extend the exemption to transfers
of foreign stocks by way of a gift. |
Section 36(d)
[Clause 5]
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Clause 5 amends
paragraph (d) of section 36 so
as to extend the exemption from stamp
duty chargeable under the Act to transfers
of foreign stock by way of gift. |
