Capital duty, stamp duty and transfer tax
Stamp duty or Stamp Tax is a provincial tax triggered by the entering of written agreements signed by both parties. The tax rate applicable varies in connection with the province and in connection with the agreement. Tax rates are of 0.2% up to 5% of the total amount of the agreement.
There are legal mechanisms to avoid the payment of Stamp Tax by entering into an agreement as an offering letter.
No capital duty. Stamp duties and transfer taxes may be imposed at the State and Territory level on transfers of assets and other "dutiable transactions," which includes certain transfers of shares in "landholders."
Where applicable, exemption may be available on application to, and approval by, the relevant State/Territory Revenue Office.
From July 1, 2016, share transfer duty was abolished in all States and Territories.
Austria levies stamp duty on certain legally predefined transactions for which a written contract has been established. Stamp duty has to be paid if at least one Austrian party is involved or, even if a contract is concluded between non-Austrian parties only, if the subject of the contract relates to Austria. Stamp duties are due on certain transactions (eg, on the assignment of receivables and on rental agreement).
The transfer of real estate leads to real estate transfer tax in the amount of 0.5 to 3.50%. Specific taxes exist also for some specific industries (eg, banks, insurances, airlines).
There is no capital duty. Share transfers are not subject to stamp duty or transfer tax. Stamp duties and transfer taxes may however be imposed on other transactions (eg, transfer of real estate).
Brazil does not impose capital duty or stamp duty. Transfer taxes may be imposed at the state (ITCMD) or local level (ITBI) as discussed above.
No general capital tax or stamp duty. Transfer taxes may be imposed at the provincial level.
There is no capital duty, though the PRC company registration authority charges a nominal registration fee based on the amount of registered capital of an enterprise. Stamp duty and transfer taxes (Value-Added Tax) may be imposed on asset and equity transfers as applicable.
Not applicable for this jurisdiction.
Sale of Finnish shares (non-real estate company) is subject to 1.6% transfer tax on equity value of the transaction payable by the buyer. Transfer tax is not applicable on transfers of Finnish shares between non-Finnish parties.
For transfer tax on the sale of real estate, please see above Special rules applicable to real property.
No stamp duties. The Finance Act for 2019 repealed registration duties levied on share capital increases of French companies and most reorganizations. However, registration duties at a proportional rate may be levied, in particular in the cases of acquisition of shares in a capital company, transfers of real estate assets, real estate companies or going concerns.
Real estate transfer tax (RETT) is levied on the transfer of German real estate, the (direct or indirect) transfer of 95% or more of the interest in a partnership owning German real estate to new partners within five years and the (direct or indirect) aggregation at the level of one shareholder or interest holder of 95% or more of the shares in a corporation or interest in a partnership owning German real estate. Furthermore, a transaction which has the effect that a taxpayer (directly or indirectly, or partly directly and partly indirectly) holds an economic participation of at least 95% in a company or partnership owning real property also triggers RETT. The tax rate ranges between 3.50% and 6.50% among the German federal states. However, according to currently available information, it is expected that the RETT regime will be amended to introduce a new rule for corporations that provides a reduction of the threshold to 90% and an extension of shareholding period to ten years.
There are no other transfer taxes, capital duties or stamp duties.
For shares transfer or sales of shares, ad valorem stamp duty is payable in respect of contract notes at the rate of 0.2% of the consideration or the fair market value of the shares, whichever is higher, and a fixed duty of HK$5 each is payable in respect of the instrument of transfer.
For sale or transfer of immovable property in Hong Kong, Stamp Duty applies. In addition, residential property transactions in Hong Kong may also attract Buyer's Stamp Duty and Special Stamp Duty.
In case of an intra-group transfer, a stamp exemption may apply.
ROC charges are payable when the authorized share capital of a company is increased, at progressive rates depending on the value of capital. Stamp duties and transfer taxes may be imposed at the state or local level.
No capital duty applies in Ireland. Stamp duty generally applies to certain documents which effect certain transactions which are executed in Ireland (eg, documents effecting share transfers or transfers of ownership of other assets). The rate of stamp duty varies depending on the nature of the transaction and the assets. The transfer of Irish shares is subject to 1% stamp duty and the transfer of non-residential property is subject to stamp duty at 6%.
Intellectual property transfers should be exempt from stamp duty where the type of intellectual property being transferred falls within the scope of a "specified intangible asset" which is broadly defined.
There is no Israeli capital duty or stamp duty.
VAT at a flat rate of 17% is imposed on most goods sold and services rendered. Export of goods and intangible assets are generally subject to zero rate VAT. Provision of services to non-residents may also enjoy the zero rate VAT under certain conditions.
Purchase tax is imposed on the purchase of real property or interest in real estate company, as described under Special rules applicable to real property.
No capital duty. Stamp duties and transfer taxes may be imposed on specific corporate transactions.
Upon incorporation of a company or an increase in registered capital, a certain amount of the registration tax is required that is based on the capital amount. Stamp duty may be imposed depending on the types of the documents or agreements. With respect to transfer taxes, an acquirer (a new owner) of real estate must pay the real estate acquisition tax, and the fixed asset tax must be paid by the publicly registered owner of fixed assets by January 1 of each year. Also, the registration tax is required for a real estate registration in order to perfect the transfer.
No capital duty is levied in Luxembourg (except in particular cases). A registration fee of EUR 75 is imposed on incorporation or amendments to bylaws.
There is no stamp duty in Luxembourg.
A transfer tax is applied to a transfer of immovable property. A 6% basic rate and a 1% transcription tax are applicable. For real estate located in Luxembourg City, an additional charge amounting to 50% of the transfer tax (ie, 3%) is imposed (exemptions are available).
There is no capital duty and stamp duty in Mexico. As noted above, there are real estate transfer taxes.
Real estate transfer tax is levied on the transfer of shares of Dutch real estate companies. Transfer of the shares is subjected to 6% transfer tax whenever the assets mainly (50% or more) consist of real estate.
Direct transfer of Dutch real estate is also subjected to 6% transfer tax or 2% in case of owner-occupied dwellings. Exemptions may apply.
The Netherlands does not levy any other stamp duty, capital duty or registration tax of any kind.
The sale or other transfer of real estate is generally subject to 2.5% stamp duty, based on the market value of the real estate. Transfer tax is generally not levied.
There is no capital duty. Stamp duties and transfer taxes are imposed for certain types of sales and transactions. In particular, 1% transfer tax is payable on direct sales of shares in Polish companies.
Stamp duty and transfer tax are applicable in Portugal.
There is no capital duty. Transfer taxes and notary fees may be imposed upon sale of a real estate property.
No capital duty or transfer tax is levied in Russia.
A legal entity that performs certain legal actions is required to pay a stamp duty. The list of such actions includes the following:
- State registration of a legal entity
- Registration of branches and representative offices of a foreign legal entity
- Registration of the title transfer in relation to real estate property
- The obtaining of a license to conduct certain activities
- Initiation of a court action and
- Notary services
Stamp duty is payable on dutiable documents relating to any immovable property in Singapore and any stocks or shares.
There is no capital or stamp duties. Transfer taxes are payable on the transfer of securities and properties.
Inheritance tax, gift tax, stamp tax, securities transaction tax and capital duty may be imposed at national tax level.
1% capital duty applies to share capital distributions and to dissolution of Spanish entities, to be paid by the shareholders.
Transfer tax is applicable on certain transactions, including the transfer of real estate and the lease of real estate exempt from VAT. Transfer tax is not recoverable and paid by the buyer or lessee.
Stamp duty is applicable to notarial deeds over a valuable right or asset which can be registered in a public registry, among other transactions, with rates generally ranging from 0.5% to 3% depending on the region and the transaction.
Stamp duty may be triggered on the sale of real estate. There is no stamp duty or similar on the sale of assets. Sweden does not have transfer tax.
The tax on issued securities (also called stamp issuance duty) is 1% of the amount received in consideration for the participation rights, but not less than the nominal share capital with exemption for the first CHF 1 million. This exemption is applicable for the establishment of corporations and for increases in capital up to CHF 1 million. The tax base is equal to the amount paid in exchange for the remittance of the shares (ie, the nominal value and capital surplus). Issuance stamp tax generally is not due on share issues related to mergers, demergers or similar transactions.
Transfer stamp tax is levied on the transfer of ownership of certain securities which involve Swiss securities dealers. Swiss securities dealers include banks, fund managers and similar entities, but also ordinary companies which own taxable securities (eg, shares or bonds) with a book value of more than CHF 10 million. The tax rate is 0.15% for Swiss securities and 0.30% for foreign securities. A variety of exemptions apply and these exemptions need to be checked on a case-by-case basis.
In most cantons, the transfer of real estate is subject to a conveyance tax, whereas on the federal level no taxes of such kind are levied. As a general rule, conveyance tax is assessed on the purchase price or the taxable value of the real estate and is typically paid by the purchaser of the real estate.
Capital Duty: A registration fee is charged on a company’s capital at a rate of NT$1.00 for every NT$4,000.00 capital.
Stamp Duty: Stamp duty applies to various documents at different rates.
Securities Transaction Tax: 0.30% on gross proceeds from the sale of shares issued by Taiwan companies and 0.10% on gross proceeds from trading in corporate and financial bonds (though temporarily exempt) and other securities.
Luxury Tax: The luxury tax is imposed on the sale of real property held for less than two years or import of passenger vehicles (exclusive of electric-powered vehicles), yachts, aircrafts, helicopters and light vehicles that cost more than NT$3 million.
No capital duty. Stamp duty is payable at rates ranging from 0.189% to 0.948% based on the relevant document's type.
Transfers of real estate are subject to a real estate transfer tax calculated at a rate of 4% of the transfer value. Such amount is split equally between the buyer and the seller.
State duty and pension duty are applicable to certain transactions such as the sale of real estate, vehicles and some other transactions.
United Arab Emirates
A Real Estate Transfer Fee (RETF) is applicable to transfer of real property at rates which differ per Emirate. In Dubai, the total RETF is 4% and is equally shared between seller and buyer. The rates in most other Emirates are lower than in Dubai.
No capital duty. Stamp duty is payable at 0.50% on transfers of shares, but there is an exemption for most transactions within groups, and for transfers of shares in companies which are listed on the London Stock Exchange's Alternative Investment Market (AIM).
Transfers of real estate within the UK are subject to a transfer tax, however, the specific tax and the applicable rate depends upon which part of the country the real estate is situated in.
England and Northern Ireland (SDLT) – if the property is situated in England or Northern Ireland, rates of up to 5% apply on the transfer of non-residential property. Higher graduated rates apply to the transfer of residential property of up to 12%, where the value of the property exceeds £1,500,000 and a punitive 15% rate can apply to certain acquisitions of residential property by corporate entities. Higher rates of SDLT also apply to purchases of additional residential properties and by companies (3% above the normal graduated rates of SDLT).
Scotland (LBTT) – if the property is situated in Scotland, rates of up to 4.5% apply for non-residential property and higher graduated rates apply to the transfer of residential property of up to 12%, where the value of the property exceeds £750,000. A further 3% above the normal LBTT rate applies to purchases of additional residential properties in Scotland.
Wales (LTT) – if the property is situated in Wales, rates of up to 6% apply for non-residential property and higher graduated rates apply to the transfer of residential property of up to 12%, where the value of the property exceeds £1,500,000. A further 3% above the normal LTT rate applies to purchases of additional properties in Wales.
There is no capital duty. Stamp duties and transfer taxes may be imposed at the state or local level.
Capital Gains Tax is tax payable upon the sale or disposal of a capital/specified asset.
Land and building transactions are subject to stamp duty payable by the purchaser at the standard rate ranging between one and four percent.
An intermediated money transfer tax of two percent is payable on every electronic transaction in excess of RTGS$10.00 (ten real time gross settlement dollars). Where a transaction exceeds the sum of RTGS$500 000.00 (five hundred thousand real time gross settlement dollars), a flat rate of RTGS$10 000.00 (ten thousand real time gross settlement dollars) is levied.