Stamp Duty on Purchasing a Property
Stamp duty payable to the relevant Provincial Councils under Stamp Duty Act No.43 of 1982 - Extraordinary Gazette No.1439/3 dated 03.04.2006
[A] Deed of Transfer (except Gift and Conveyance by Executor, Administrator or Trustee to a Beneficiary or by an Order of Court in matrimonial proceedings)
| (i) |
where the value of the property is Rs.100,000/- or less For every Rs.100/- or part thereof of the value |
3.00 |
| (ii) |
where the value of the property exceeds Rs.100,000/-
For every Rs.100/- of the value not exceeding Rs.100, 000/- |
3.00 |
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And
For every Rs.100/- or part thereof of the value exceeding
Rs.100,000/- |
4.00 |
[B] Deed of Gift
| (i) |
where the value of the property is Rs.50,000/- or less
For every Rs.100/- or part thereof of the value |
3.00 |
| (ii) |
where the value of the property exceeds Rs.50,000/-
For every Rs.100/- of the value not exceeding Rs.50,000/ |
3.00 |
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And
For every Rs.100/- or part thereof of the value exceeding
Rs.50,000 /- |
2.00 |
[C] Deed of Exchange
| (i) |
for exchange of any property otherwise than between co-heirs
- If of equal value, the stamp duty as on a conveyance of such property at the market value thereof
- If of unequal value, the same duty as on the conveyance of a property which is of the Higher Value at the market value thereof
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| (ii) |
for exchange of any property between co-heirs
- If of equal value, Rs.10.00
- If of unequal value (where pecuniary consideration for equality is given), the same duty as on the conveyance of a property the value of which is of equal to the Difference in the market value of the properties exchanged
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Stamp Duty payable to the Central Government under Stamp Duty (Special Provisions) Act No.12 of 2006 – Extraordinary Gazette No.1465/19 dated 05.10.2006
[D] Indenture of Lease
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For every Rs.1000/- or part thereof of the aggregate lease including and premium payable for the whole term of the lease agreement
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Rs.10/- |
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Provided that where the term of the lease exceeds 20 years the aggregate lease payable for the whole term of the lease shall be deemed to be the aggregate of the lease payable for the first 20 years of such term
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Exemption – Any instrument relating to a lease of any building where such lease payment does not exceed Rs.5000/- per month. |
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[E] Mortgage Bond
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Any mortgage for any definite and certain sum of money affecting any property |
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For every Rs.1,000/- or part thereof |
Rs.1/- |
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Exemption – Any deed of mortgage executed in respect of any loan for Rs.3 Mn or less taken for the; |
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- construction of a house,
- or purchase of a house or of a site for the construction of a house
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where the mortgage is any commercial or specialized bank licensed by the Monetory Board under Banking Act No.30 of 1988, any finance company registered under the Finance Company Act No.78 of 1988, any institution registered under the Co-operative Societies Law No.5 of 1972, any public corporation, any provident fund approved by the Commissioner General of Inland Revenue for the purposes of the Inland Revenue Act No.4 of 1963 or No.28 of 1979 or No.38 of 2000 or No.10 of 2006 or any other institution approved by the Minister in charge of the subject of Housing.
FOREIGNERS ACQUIRING PROPERTIES IN SRI LANKA
If a non citizen (foreigner) or a Company incorporated in Sri Lanka with more than 25% of foreign participation in the equity of such company purchase an immovable property in Sri Lanka a tax of such amount as is equivalent to the value of that property shall be paid to the central government of Sri Lanka subject to certain exceptions mention below.
Exceptions where above tax is not applicable.
[A] Any land the ownership of which is transferred to an enterprise to which the Board of Investment of Sri Lanka has granted authorization in writing to set up on such land
| a |
a project for the construction of not less than 100 residential housing units, each constructed on land not exceeding 10 perches inclusive of appurtenant land, or a condominium property within the meaning of the Apartment Ownership Law comprising not less than 100 units for residential or non-residential accommodation, provided that the total value of said land is met by inward remittance of foreign currency.
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| b |
a project for the construction and operation of a hospital or a hotel provided that the total value of said land is met by inward remittance of foreign currency and that the investment on the project be not less than 10 Million USD or its equivalent in Sri Lanka Rupees.
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| c |
a project relating to infrastructure development or any other development determined by the minister as being essential for the economic progress of Sri Lanka, provided that the value of said land is met by inward remittance of foreign currency and the investment on the project be not less than 50 Million USD or its equivalent in Sri Lanka Rupees.
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| d |
a project relating to service sector including BPO industry, IT related training institution, educational institution, determined by the minister as being essential for the economic progress of Sri Lanka , the value of said land is met by inward remittance of foreign currency a and the investment on the project be not less than USD 2 Million or its Rupee equivalent and that such projects employs not less than 50 local persons.
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| e |
a project solely for the manufacture of non-traditional goods for export, for the establishment of its manufacturing plant , office, storage facilities, dormitories for workers provided that the value of said land is met by inward remittance of foreign currency and the investment on the project be not less than 1 Million USD or its equivalent in Sri Lanka Rupees.
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[B] any condominium unit of a condominium property situated on or above the 4th floor of such condominium property, the ownership of which is transferred to a person who is not a citizen of Sri Lanka, provided that the value of such unit is met by inward remittance of foreign currency. In computing the number of floors in a condominium property, a floor which accommodates any common elements within the meaning of the Apartment Ownership Law in excess of ½ of the floor area of such floor shall not be taken into account.
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