Jamaica's Tax Administration

Annual Reports Assets Tax General General Consumption Tax (GCT) Income Tax Motor Vehicle PAYE Property Tax Stamp Duty & Transfer Tax Tax Compliance Certificate Tax Kit Taxpayer Registration Technical Bulletins

Contractor's Levy Customs Declaration of Assets Education Tax G.C.T Income Tax Motor Vehicle Online Registration STEP Visit Request T.C.C Tax Reminder TRN Application

Director General's Executive Office (DGEO) Inland Revenue Department (IRD) Jamaica Customs Department (CD) Tax Administration Services Department (TASD) Taxpayer Appeals Department (TAD) Taxpayer Audit & Assessment Department (TAAD)

Untitled Document


Introduction	Service Standards How You Can Help
Main Functions of the Division	Assess & Collect Stamping Documents Deadlines for stamping documents
Documents Normally Stamped	Agreements . Addendum Bills of Sale . Bills of Lading Cheque Leaves Composition Agreements/Pre-stamped Documents Deed Poll Hire Purchase Agreements Insurance Policies . Intestate Land Title Application . Leases . Loan Agreements Memoranda & Articles of Association Mortgages Power of Attorney . Promissory Notes . Property Releases of Assignment/ Discharge of Mortgage
Estate Matters	Revenue Affidavit Testate Transfer Tax on death Valuation of Property
Property ownership	Sole Proprietorship/Tenants in Common Joint Tenants
Transfer Tax Allowances & Exemptions	Allowances: Calculation of Tax . Calculation of Interest Exemptions: Principal Place of Residence Life Interest Trust (where the deceased is a Trustee)
Obtaining a Stamp Commissioner’s Certificate	Obtaining a Commissioner’s Certificate
Additional Information	Stamp Duty Rates Documents for Stamping & Deadlines for Submission

INTRODUCTION	The Stamp Duty & Transfer Tax Division of the Taxpayer Audit & Assessment Department (TAAD) is popularly but misleadingly known as the “Stamp Office”. Some people have misinterpreted this title and have been surprised to learn that postage stamps are not sold at any of three offices island wide, and that one is also unable to send telegrams from the offices – as persons have tried to do! We are committed to providing an excellent service that meets your needs and expectations. From us, you can expect: Professionalism Accountability Respect Teamwork Integrity Excellence Service oriented staff.
Service Standards	Telephone calls will be answered within 5 rings. Letters will be answered within 3 weeks of receipt. Office visits - you will receive attention within 15 minutes. Refunds, with complete documentation within 90 days.
How You Can Help.	We recognize your desire for excellent service. To help us deliver this level of service, we need your cooperation. How? Provide complete & accurate information Reply promptly to correspondence Pay your tax on time Always quote the Reference Number on your Document Receipt(s) when in dialogue (written or oral) with us. Comply with all the requirements of the tax laws.

MAIN FUNCTIONS OF THE DIVISION:	The main functions of the Stamp Duty & Transfer Tax Division are to assess and collect on behalf of the Government of Jamaica as well as to Stamp and transact Transfers of ownership on behalf of its clients (transacting parties).

Assess & Collect	The Division assesses and collects stamp duties and transfer taxes that become payable/due on upon the execution of specific transactions, sales and/or transfers of properties. These will include: Stamp Duty on a range of legal and commercial documents Transfer Tax involving the transfer of real properties (Real Estate) and shares Transfer Tax on Death

Stamping Documents	Documents are stamped as proof of the payment of Stamp Duty & Transfer Taxes, to make them legal and binding under the Law.

Deadlines:	Most legal documents must be stamped within a specified time. The general rules outlined below apply. Documents with a fixed rate of duty must be stamped within 7 or 14 days after the date of signing (execution). Documents subject to an ad valorem rate of duty (based on the value of the transaction) – within 30 days after the date of execution. Other documents subject to ad valorem rate - within 7 – 14 days. E.g. Promissory notes; Life insurance Policies.
Documents Normally Stamped
Agreements:	These include Sale Agreements for the transfer of property. These agreements attract an ad valorem duty/tax known as “Conveyance Duty” or Transfer Tax. Transfer Tax is borne by the Vendor. In cases where the portion of a property (gift or sale) is being transferred, Transfer Tax is chargeable on the market value of the property being transferred. Properties cannot be legally transferred unless the Transfer Tax & Stamp Duty has been paid. There are provisions in Law for the exemption of certain transactions e.g. a church site, or documents on behalf of a Co-operative Society.

Addendum:	This is a form which provides additional information for the Department’s valuators when valuing a deceased’s estate.

Bills of Sale:	Documents which are prepared by Financial Institutions issuing a loan to purchase goods.

Bill of Lading:	Document relating to the importation or exportation of goods.

Cheque Leaves:	These are pre-stamped in most instances.

Composition Agreements (Pre-Stamped Documents):	Companies/Institutions requiring large numbers of documents to be stamped on regular basis may enter into a Composition Agreement with the Commissioner. This would enable the Companies to print the “Stamp Duty Paid Medallion” on the document and make periodic returns, as specified by the Commissioner.

Deed Poll:	These are documents formalizing a change of name other than through marriage.

Insurance Policies:	These include life, home, health, accident, marine, motor vehicle etc.

Intestate:	Where a person passes (dies), without leaving a Will, and the administration of the disposal of his/her assets are done through the Courts, this is known as “intestate”. (See explanation of “Testate”, for additional information).

Land Title Application:	Where the owner of unregistered land applies to bring the property under the Registration of Title Act to be registered in his name, no transfer tax is payable and only one-third (1/3) Conveyance Duty is payable.

Leases:	These include the leasing of equipment as well as property (land, a dwelling house or a place of business). Equipment leases attract a fixed duty. Leases for real property attract an ad valorem duty, depending on the lease. Transfer of a Lease is treated similarly to the transfer of property.

Loan Agreements:	Agreements made regarding the repayment of a sum of money at a particular rate of interest, over a specified period of time.

Memoranda & Articles of Association:	These are documents relating to the formation of a Company. These documents must be stamped before being lodged at the Companies of Jamaica. Articles of Association attract a fixed duty, but Memoranda of Associations attract an ad valorem rate, depending on the share capital of the Company.

Mortgages:	Whenever a loan agreement is entered into for the purchase of property which is in turn given as security, it attracts an ad valorem duty called “Mortgage Duty”, based on the amount of the loan.

Power of Attorney:	This is a legal document giving an individual authority to transact business on behalf of another person. Document must be registered at the Records Office in Spanish Town, after being stamped.

Promissory Notes:	A promise in writing made by one person to another to pay at a fixed time, a fixed sum of money owed.

Property:	Section 3(4) of the Transfer Tax Act defines property as follows: Land Lease of land Securities Beneficial Interest under any settlement of - Property in any class mentioned above Beneficial interest derived by way of settlement for property in any such class, whether through one or more settlements. Properties owned locally or overseas, depending on the domicile of the deceased.

Releases of Assignment/ Discharge of Mortgage:	Documents releasing interest in asset held as security/collateral for loan given on repayment of the said loan by person(s) who borrowed the money.

ESTATE MATTERS:
Revenue Affidavit:	This is a prescribed form to be completed and submitted by the personal representative (Executor/Administrator) of the deceased, along with accounts annexed thereto on particulars of all property of which the deceased was competent to dispose at his death and value thereof, in respect of which tax is payable. This, in addition to other specific documents depending on whether or not the deceased died leaving a Will, is the principal document required by the Stamp Duty & Transfer Tax division. (Paragraph 17(1) of the 1st Schedule offers guidelines on completing the Revenue Affidavit).

Testate:	When an individual dies leaving a Will, this is described as “testate” which aids in the determination of how property is to be shared. The person given responsibility for administering the deceased’s wishes is known as the “Executor”. (See explanation of “Intestate”).

Transfer Tax on death:	This is the amount payable on a deceased person’s estate. The amount due is to be paid to the Government for the transfer of the property from the estate to the beneficiaries. On the death of an individual domiciled (permanently residing) in Jamaica, all property including those owned overseas, is subject to tax in Jamaica. Section 5(1) of the Transfer Tax Act states that: “on the death of any individual after 31st May 1974, all property of which he was at his death competent to dispose shall, for the purpose of taxation in conformity with Subsections (2) & Section (3) of Section 12, be deemed to be, for a consideration equal to the market value at the date of his death to the persons to whom such property passes on his death”.

Valuation of Property:	Property should be valued at Market Value at the date of death. Section 5(1) of the Transfer Tax states: “be deemed to be for a consideration equal to its market value at the date of his death , transferred by him at the death of the persons to whom such property passes on his death”.

Property ownership:	Persons may hold property as either a Sole Proprietor, Joint Tenant or as a Tenant in Common.

Sole Proprietors	This type of property owner has sole rights to the property; as such the disposal/sale/transfer of the property is left to his discretion alone.

Joint Tenant/Owners	With this type of ownership the law of Survivorship obtains. That is to say, where, in the event of death of one party, the property shall transfer to the surviving party.

Tenants in Common	Where each owner owns his /her portion independent of the other.
	The manner in which an Estate is administered/ processed will depend on how the deceased held property.

Sole Proprietorship and Tenants in Common:	Where all the beneficiaries are adults, then the Courts may allow them to nominate someone to administer the Estate. Where minors are involved, the Administrator General has the responsibility to administer the Estate. In this instance, the estate will be administered in accordance with the “Intestate Estates & Property Charges Act”. (See the Definitions section of this Guide for meaning of Intestate and Testate.)

Where a Sole Proprietor or Tenant in Common dies Testate	The following documents are required to execute the transfer of property: Copies of - Will & Probate Inventory filed in the Courts Land Title Share Certificates Securities Financial Statements (nearest to the date of death) Death Certificates Receipts for funeral Expenses/Mortician bills Declaration of principal place of residence (Voluntary Declaration Act)

Where a Sole Proprietor or Tenant in Common dies intestate	The following documents are required to execute the transfer of property: Copy of Inventory filed in the Courts Land title Death Certificate Share Certificates Financial Statements (Private Companies) Receipts for funeral expenses/Mortician bills Letters of Administration Declaration of Principal place of Residence.

Joint Tenants	On the death of a Joint tenant, the following documentation are required to execute the transfer of property: Death Certificate Copy of Title Share Certificate Declaration of Principal place of Residence (if applicable)

Transfer Tax Allowances & Exemptions
Allowances: (under Paragraph 13 of the 1st Schedule)	Following are allowances under Paragraph 13 1st Schedule - Funeral expenses (must be reasonable) Just debts and encumbrances (must be reasonable) Mortgage Debts Trust Deed Note carefully: These expenses will be allowed provided the deceased did not make specific provisions, or the debts will not be reimbursed from any other person or his Estate (e.g. Insurance proceeds). The Commissioner must be satisfied that such expenses cannot be discharged out of such of the deceased’s assets, as are not included in the property aggregated as aforesaid. No allowance will be given for debts incurred outside of Jamaica, except out of value of property held abroad. Where any property passing on death is situated outside of Jamaica and the Commissioner is satisfied that by reason of death, any tax, duty or other imposed in respect of that property is payable in the country wherein assessed, an allowance will be made for such tax. If there is an expense for administering or in realizing property which is abroad, an allowance may be granted but not exceeding 5% of the value of the property.

Calculation of Tax	A) For persons who died June 1, 1974 – May 31, 2005 - Section 12(2) of the Transfer Tax Act states: “For every dollar of the first $10,000 of value or such amounts as may for the time being be prescribed Nil Nil For every dollar of the next $10,000 of value: 7.5 cents For very dollar of the next $40,000 of value: 10 cents For every dollar of the next $50,000 of value 12.5 cents For every dollar of the remaining value 15 cents” B) Person who died June 1, 2005 – April 30, 2008 For every dollar of the first $100,000.00 of value: Nil For every dollar of remaining value: 7.5% C) Persons who died May 1, 2008 For every dollar of the first $100,000.00 of value: Nil For every dollar of remaining value: 6%

Calculation of Interest	Interest is calculated as per Paragraph 17(3) First Schedule of the Transfer Tax Act: “6% per annum shall be paid upon any of the tax outstanding from and after the expiration of twelve (12) months of the date of death of the deceased, to the date of payment”. NB: as per Paragraph 12(1) of the Transfer Tax Act, “property must be aggregated”.

Exemptions:
The Principal Place of Residence	(Paragraph 11(5) & (6) Amendment d/d 10/9/1997) – The law provides for exemption from the duty for the principal place of residence provided that it was occupied as such, by the deceased and spouse immediately prior to the death – and that more than one residence of the deceased shall not be accepted as being his principal residence. The principal place of residence does not have to be the matrimonial home. The exemption for this is given when it is the principal residence of the deceased and his spouse and owned by the deceased, or the deceased and his spouse jointly, or a Tenants in common. Prior to November 17, 1988, where the deceased was the sole owner of the property, exemptions were not given. The effect of the Amendment is that property – whether jointly or separately owned – are now exempted. Since September 1997, additional beneficiaries, who must all be resident on the subject property include: Mother Father Step – mother Step-father Children (A marriage certificate and Statutory Declarations must be submitted as proof).

Life Interest (Sec 6(4) – Life Tenant)	A “life tenant” is a person who is left to occupy a property until his/her death. At his/her death, no tax is chargeable, provided the life interest was given by the person to whom the Life Tenant was married. In every other circumstance the Transfer Tax of 7.5% is chargeable.

Trust (where the deceased is a Trustee):
To value Shares for a Public Company (Regulations d/d 30/07/1971)	Public Companies use the lower of the ASK and BID price added to ¼ of the difference of both. Where there are special prices, average the price, and then use the lower of the two. NB: Market value shall be ascertained by reference to the latest previous date, or earliest subsequent date on which the Stock Market was last opened and the prices are listed on the Stock Exchange – whichever affords the lower market value.

To Valuing Shares for a Private Company (Regulations d/d 30/07/1971)	Private Companies use the Company’s net asset divided by the number of shares issued and paid up.

OBTAINING A STAMP COMMISSIONER'S CERTIFICATE	The Representative of the Estate – Executor, Administrator or surviving Joint Tenant – is required to present to the Commissioner the following documents: A Revenue Affidavit Addendum Copy of Certificate(s) of Title, Indenture of Conveyance Copy of probated Will Copy of Inventory showing a list of personal and real properties Copy of Death Certificate from the Registrar General’s Department Valuation Report of property (if available) Declaration of surviving spouse. It may be necessary that further enquiries are made by the Stamp Duty & Transfer Tax Division to verify the validity of the documents presented. For example, where a valuation report is not available, the division may dispatch a Valuator to inspect the property to determine its market value as at the date of death. Based on this valuation, the division determines the tax chargeable on the deceased’s estate. After the tax has been paid by the personal representative of the estate, Transfer Tax & Stamp Commissioner’s Certificates are issued to show that the tax has been paid. Please note that it is only after the relevant duties have been paid that the property may be transferred. This transfer may be to the Executors who will hold the Estate in trust for the beneficiary, or directly to the Surviving Joint Tenant. Please note the following carefully:
	After a person dies the Revenue Affidavit must be filed within 12 months of a person’s death Interest accrues at the rate of 6% payable on the 1st Anniversary of the date of death Valuation of property is at the market value at the date of death It takes approximately 6 weeks for properly completed documents to be processed. Documents to be “Upstamped” or stamped: Probate/Letter of Administration* Transfer Tax Certificate, Transfer on transmission (for property to be passed to the Executor)* Assent to Devise (for property to be passed to the Beneficiary)* Application to note Death (Joint tenancy)* *All documents so indicated will be returned. On completion of the Assessment and where the tax has been paid, a Stamp Commissioner’s Certificate & Transfer Tax Certificate will be issued.
	ADDITIONAL INFORMATION: If you are the beneficiary of an Estate, the transfer process begins at the Stamp Duty & Transfer Tax Division. Land, Buildings and Shares are liable for Transfer Tax.

modified: 11-jun-10