Bahamas - More information regarding stamp duties

 Temporary Waiver of Surcharge

No surcharges will be payable on documents that are presented for stamping on or before 1 October 2010.

 Applicable Stamp Duty

The stamp duty in force at the date documents or transactions are

presented for stamping will be the applicable stamp date (not the date when the transaction was consummated or the document was created).

 Consideration

Consideration will now be defined as not only the price payable for the sale or transfer of any property or business, but also the market value of the property or business. Stamp Duty will be payable on the greater amount of the stated price or the market value.

 Time share interests

Time share interests are no longer exempted from the Act. The sale of a time share interest will be subject to stamp duty according to the value of the time share interest, at the same rate as a regular conveyance.

 Mortgage

Mortgage has been modified to also include any promissory note made supplemental to or in connection with any mortgage or charge.

 Rule of Construction

The rule of construction that ambiguities in revenue statutes are to be construed in favour of the person liable to pay the duty no longer applies in the interpretation of the Act.

 Sale of land and connected construction contracts

In the case of transactions involving a transfer of land and a construction contract, stamp duty will be payable upon the combined consideration.

There is no longer any exemption for combined considerations of less than $250,000.

 Dividends-in-specie

All dividends-in-specie of property, whether occurring in the course of a winding-up of a company or otherwise, will attract stamp duty.

 Stamp Duty on Instruments and Other Documents in Civil Proceedings before the Supreme Court

Such instruments and other documents no longer attract stamp duty.

 Foreign Currency-denominated debt instruments

This term will now be used in lieu of “Eurobond”. It will encompass notes, bonds, debentures, or other instruments or certificates of indebtedness or obligations in foreign currency and offered for issuance outside The Bahamas by a licensed bank in The Bahamas or the parent or affiliate of such licensed bank.

 New Exemptions

The following transactions will also now be exempt from stamp duty:

- Transfer of property from an individual to a company all of whose shares of every class are beneficially owned by that same individual

- Transfer of property from an individual to the trustees of a trust or a class of persons which is unalterably limited to that same individual, his spouse, children and/or grandchildren

 Repealed Exemptions

The following are no longer exempted from stamp duty:

- Import entries approved by the Minister in respect of equipment and vehicles imported by Government agencies N

- Import entries in respect of goods recommended by the Minister responsible for housing and approved by the Minister as constituting materials and components of systems building imported by the Minister responsible for Housing or contractor authorised by him for use in the construction housing project

- Instruments relating to the vesting of property in any person by or in obedience to an order of any court of competent jurisdiction

- Import entries in respect of goods recommended by the Minister of Education and approved by the Minister as building materials and supplies for the construction, renovation and repair of educational institutions and furniture for educational institutions

The new First Schedule (formerly the Second Schedule) sets out new rates of stamp duties for various instruments.

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This post is for your information only and nothing in this post is intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian real estate attorney.  You can contact a Bahamian real estate attorney by clicking here.