Stamp Duty Reminder
A number of recent enquiries to the Lands
and Survey Department indicate that a degree of uncertainty exists
amongst developers, attorneys, real estate agents, tenants and
landlords on the question of stamp duty payable on commercial
property leases. In an effort to clear-up this uncertainty the
department advises the following:
1. The Stamp Duty Law (2002 Revision) provides for stamp duty
to be levied on leases or agreements for leases of immovable property.
2. The amount of duty payable is assessed by the Valuation Office Section of Lands and Survey.
3. Stamp Duty varies depending on several factors including: the term of the lease/agreement; the annual rent payable; and whether any options to renew exist.
Stamp duty is payable no matter how long or short the term of the lease/ agreement. The registration of documents and the payment of stamp duty are not the same. A lease document must be submitted to Lands and Survey for the assessment of duty, regardless of whether there is a requirement to register the lease/agreement.
Commenting on the issue, the Director of Lands and Survey/Registrar of Lands, Clark Buchanan says, "Because the general public may not be fully conversant with the work of the various sections in Lands and Survey, I can understand how some confusion could have arisen. However, I hope that by publicising the issue in this way, more people will realise their responsibilities."
He also pointed out that under the Registered Land Law (1995 Revision) [the Law], all leases greater than two years must be registered (leases shorter than this period may be registered). The law goes on to say that any option to renew a term, which together with the original term exceeds two years, shall be registered. "We should be seeing more leases being presented for registration than in the past and I encourage registration as much as possible for the protection of both parties to the lease transaction," he concludes.
Detailed guidance and assistance about stamp duty on leases is available by contacting the Valuation Office Section of the department at 244-3124.