What are Transfer Tax and Stamp Duty?
April 4, 2017 | REMAXJA Admin
Transfer Tax is a payment to the Commissioner of Stamp Duty at the rate of 5% of the sale price or value for which the property is transferred. Transfer Tax is borne by the vendor, but it is the purchaser who is required to pay over the Tax to the Commissioner, and recover the amount from the purchase price.
Stamp Duty is calculated at a rate of approximately 4% of the sale price for which the property is transferred. The purchaser and vendor usually share payment of Stamp Duty equally. Please not that a conveyance of land is required to be stamped within 30 days after it is signed to avoid penalty. The penalty for late stamping is quite substantial. If an Agreement for Sale is not stamped, it cannot be admitted in Court as evidence, in the event that either the vendor or the purchaser wishes to use it for the enforcement of the Agreement.
You should contact the Commissioner of Stamp Duty,
111 Harbour Street, Kingston, or visit the Tax Administration Jamaica website
for more detailed information.