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STAMP DUTY GUIDE  

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 $  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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