New Stamp Duty Ordinance
A bill approved April 22 by the Consultative Forum lowers stamp duty for property sales under $3 million. It also provides for paying duty over four years and offers a 10 percent discount if paid in full at the time of the sale. Revenue from stamp duty amounted to only $11.7 million in 2009-10, down from $43 million in 2008-09. The government estimates a slight increase to $13 million in 2010-11 because of the change in stamp duty rates and with some rebound in the real estate market. Most real estate transactions on Providenciales have required a stamp duty rate of 9.75 percent.
The new fees apply to all islands except North Caicos, Middle Caicos, East Caicos, South Caicos, Grand Turk and Salt Cay, which are 50 percent of the following rates:
| Less than $25,000—no duty. $25,000-500,000 — 4% 3.6% — one payment 1% — four payments |
$500,000-1.5 million — 6% 5.4% — one payment 1.5% — four payments $1.5-3 million — 8% 7.2% — one payment 2% — four payments |
More than $3 million —10% 9% — one payment 2.5% — four payments |
In cases where stamp duty is being paid in four annual payments, the property will have a registered restriction to the crown and cannot be sold until duty is paid in full.
PDF copy of Stamp Duty Ordinance
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