General
Stamp Duty represents a charge on legal instruments as specified
under the various Heads of Charge in the Stamp Duties Act 1976 ("the
Act").
Documents subject to Stamp Duty
The Schedule to the Act imposes duty on certain types of instruments
which include:
- Affidavit, declaration or affirmation
- Affidavit of value of deceased Estate
- Agreement or memorandum of agreement
- Appointment
- Appointment of new trustee
- Appraisement or valuation
- Awards on arbitration
- Bill of exchange
- Bond
- Charter party
- Conveyance or transfer of real or personal property
- Covenant
- Declaration or revocation of a trust
- Deed
- Duplicate or counterpart
- Exchange
- Insurance premium receipt
- Lease and agreement for lease
- Letter of allotment
- Marketable securities and shares
- Memorandum of association
- Memorandum of increased capital
- Mortgage, bond, debenture or warrant of attorney
- Notarial act
- Partition or division
- Partnership agreement
- Policy of insurance or reinsurance
- Power of attorney
- Promissory note
- Release or renunciation
- Settlement
- Trust deed
Method of Stamping
Every instrument chargeable with Stamp Duty shall be stamped:
- by means of an adhesive stamp in accordance with the Act,
- by means of a stamp impressed by a licensed franking machine,
or
- by means of mechanically printed figures where the instrument
is stamped by the public officer authorized by the Accountant General.
Rates of Stamp Duty
The rates of Stamp Duty are specified under the various Heads of
Charge in the Act. The following rates apply to Heads 14, 15, 17 and
25.
Head 14- Conveyance or Transfer on sale of land
On the first $100,000 of that amount or value, or any part thereof
- 2 per centum
On the next $400,000 of that amount or value, or any part thereof
- 3 per centum
On the next $500,000 of that amount or value, or any part thereof
- 4 per centum
On the next $500,000 of that amount or value, (over $1,000,000
but not exceeding $1,500,000) or any part thereof - 6 per centum
Thereafter - 7 per centum
Head 15 and Head 17 - Conveyance or Transfer on sale or a Voluntary
Disposition
On the first $100,000 of that amount or value, or any part thereof
- 2 per centum
On the next $400,000 of that amount or value, or any part thereof
- 3 per centum
On the next $500,000 of that amount or value, or any part thereof
- 4 per centum
On the next $500,000 of that amount or value, (over $1,000,000
but not exceeding $1,500,000) or any part thereof - 6 per centum
Thereafter - 7 per centum
In respect of property that is not Bermuda property - 1 per
centum
Head 25 - Lease and Agreement for Lease
If granted in consideration of a rent - Stamp Duty in accordance
with the following:
| Amount/value in rent |
Duty in $ |
|
|
| Under $1,200 |
$75 |
| $1,200 or more but under $1,500 |
$100 |
| $1,500 or more but under $2,500 |
$150 |
| $2,500 or more but under $3,500 |
$200 |
| $3,500 or more but under $5,000 |
$300 |
| $5,000 or more |
$400 |
|
|
If granted without consideration of a rent:-
(i) calculate 1/12 of the annual rental value, as determined
under the Land Valuation and Tax Act 1967, of the premises leased;
and
(ii) treat the figure arrived at as a result of such calculation
as if it were the amount or value of rent per month; and
(iii) apply the Stamp Duty appropriate to that amount or value
of rent per month as specified in the Table above to the figure
arrived at as a result of such calculation.
Time for stamping: 30 days after execution
Person liable: all persons executing
Cost of duplicate copy: $25.00
Validity of Unstamped Instruments
No instrument chargeable with Stamp Duty shall be received in evidence
in any proceedings whatsoever except:-
i) criminal proceedings, or
ii) civil proceedings on behalf of the Government to recover Stamp
Duty
unless such instrument is duly stamped.
Adjudication under Section 22 of the
Act
The Tax Commissioner may be required to express his opinion upon
any of the following questions with reference to any executed instrument
or any instrument intended to be executed -
i) whether the instrument is chargeable with any Stamp Duty
ii) with what amount of Stamp Duty the instrument is chargeable
The adjudication of an instrument is subject to the payment of a
fee. The Tax Commissioner will also require the production of the
instrument for adjudication and may require other evidence in order
that he may satisfy himself regarding the facts and circumstances
affecting the liability of the instrument to Stamp Duty or the amount
of the Stamp Duty chargeable thereon.
Note
The information contained on this page is merely a guide for the
taxpayer and is not a comprehensive statement of the Legislative requirements.
These requirements are contained primarily in the Stamp Duties Act
1976 as amended. Bermuda Laws Online can be accessed at
www.bermudalaws.bm.
Enquiries
Further enquiries may be made by contacting
us.
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