STAMP DUTY SBT FORUM

18th to 19th February 2021

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Presentation focus:

Overview

understand what is stamp duty

Identify instruments that are liable for stamp duty

Method of payment.

Know rates of most commonly lodged instruments

(Contract for Sale of Real property, Lease Agreements and Share

Transfers)

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WHAT IS STAMP DUTY

Stamp Duty is tax levied on legal instruments that

evidences an agreement between two or more parties.

It is a intermittent tax type

Source of revenue for the state

Gives Legal recognition

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Instruments liable for stamp duty:

Contract for Sale of property and Transfer of Title.

Duplicates and Replicas

Deed of Gift

Lease of Land and Goods

Partitions or Divisions of the Interests of lessees under

lease of land

Deed of Settlement

Transfers or Assignments of Lease of Land

DUTIABLE INSTRUMENTS

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Cont… Minerals and Petroleum Farm-Ins and Transfers of

Mining and Petroleum Information

Company Reconstructions Transfer of Property

Transfers of Marketable Securities or Right to issue of

Shares, and Directions as to the Issue or Allotment of

Shares

Acquisition of Interest in Landholding Private

Corporation

Betting Tickets

Lottery Tickets

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When they are first executed, meaning signed, sealed and dated.

Instruments executed in PNG, lodge within 60 days from the date they were signed.

Instruments executed offshore, lodged within 180 days from the date it arrived in the country.

LODGEMENT DUE DATE

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MODE OF PAYMENT?

Pay by Bank Cheque

Electronic payments at any commercial bank.

◦

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Where the value does not exceed K35,000.00

K5.00 or an amount equal 2 per cent of the value, whichever is the greater

Where the value exceeds K35,000.00 but does exceed K70,000.00

Amount equal to 3 per cent of the value

Where the value exceed K70,000.00 but does not exceed K140,000.00

An amount equal to 4 per cent of the value

Where the value exceed K140,000.00

An amount equal to 5 per cent

RATES FOR CONTRACT OF SALE OF PROPERTY

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A lease for up to 4 years

For the first K240 (or part thereof) of the rent for the period

K5.00

For the remainder

An amount equal to 0.4 per cent of the rent for the lease period

So much of the for the lease period as exceeds K240.00

A lease for 5 years or more

For the first K240.00 (or part thereof the rent for the lease period

K10.00

For the remainder 1per cent So much of the rent for the period as exceeds K240.00

RATES FOR LEASE AGREEMENT

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An amount equal to 1 per cent of the value;

1 per cent

or; 0.10t

Whichever is greater

RATES FOR SHARE TRANSFER

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To qualify the buyer :

must be a citizen,

have never bought or own a property anywhere in PNG or overseas

Is buying the property for use solely as his or their principal residence.

FIRST HOME BUYER

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Where the value does not exceed K500,000.00

NIL

Where the value exceeds K500,000.00

5 per cent of the value in excess of K500,000.00

RATES FOR FIRST HOME BUYER

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