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Stamp Duty |
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Sales Tax is considered as the premier sources of revenue for a government, in any country or nation. The economy of a country largely depends upon the implementation of Sales tax on the public and different manufacturers and organizations. Different countries have different ways and rules to implement and impose Sales Tax. Other than Sales tax, there are Other Types of Tax as well and these tax generate a substantial part of the revenue earned by the administration. Some of these other kinds of tax are Payroll tax, Income tax, Capital Gains tax, Flat tax, Stamp Duty, Fair tax, Turnover tax, Gross Receipts tax, Excise tax and many more.
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The administration or the government can function properly with the monetary assistance received in the form of these tax. Stamp Duty tax is a type of tax that is imposed on various kinds of documents. In the past, a tax stamp, also known as physical stamp, needed to be stuck to or impressed impressed on a particular document to signify that the payment of Stamp duty had been done prior to the document's becoming effective in a legal way. A document that needs Stamp Duty cannot be legally effective without it. However, in the modern times, a change has occurred in the levying of Stamp Duty. Various countries and nations around the world have various rules of imposing Stamp Duty.
In the United States, at one point of time, imposing Stamp Duty on notes, deeds and other documents of transaction, was the concern of the federal government. Nowadays, this is done by the states. Sale of real estate or transference of real estate, a real estate transfer tax is levied during the time of the process of registration of a particular deed in the related public records. In some of the states in the United states, Stamp Duty is imposed during mortgaging or while taking a loan against property. This tax is known as intangible tax, mortgage tax or documentary stamp tax. Like the United States, in the country of Australia too, Stamp Duty is levied by the states rather than the federal government. However, there are variations in the rates of Stamp Duty, from one state to another. This is done in accordance to the varying transaction instruments which are subjected to Stamp Duty. Those who are buying their first home, there are certain exemptions and rebates offered to the prospective buyers. In the country of Hong Kong, Stamp Duty is charged in accordance to the Schedule 1 of Hong Kong Stamp Duty Ordinance Cap. 117. The legal documents on which the Stamp Duty is imposed can be divided into four categories, namely,
Head 1: All types of sales and transactions of interests in Hong Kong immovable property.
Head 2: The transfer of Hong Kong Stock.
Head 3: All bearer instruments in Hong Kong.
Head 4: Any type of counterparts or replicas of the above mentioned documents.
In countries like India, Singapore, Ireland and the United Kingdom, Stamp Duty is imposed according to the laws and rules of the particular country. | | | |
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