What is Stamp Duty And When Do You Have To Pay It?

Stamp duty is a type of tax levied on specific land documents. Generally, this tax is applied within Ireland where land is transferred or traded, and where the land is traded, the documents drawn up on it, and the documents drawn up on it. There is a tax on such types of documents. Such tax is levied on the papers made for the transfer of lands. Such taxes are also called Deeds of Convenience and Deeds of Transfer. Apart from this, such taxes are also levied on the following documents.

• Land and Property:Land situated within Ireland that may be leased or let shall be levied on written documents thereon.
• Stock Market:Stamp duty will also be levied on the documents produced for the goods being transferred to or taken out of stock.
• Transfer Property:This tax will also be applicable on documents that lead to the transfer of property from one place to another as a gift.
• Agreement Documents:This tax will also apply to documents made for agreements or contracts.
• Contract:Documents for an agreement to be leased to someone.
• All other properties:All property situated within Ireland and that property is to be given to or taken from any person shall be subject to our tax on all documents relating to it.

If you want to know more about this time duty tax and what it will be applicable to, you have to refer to Schedule 1 and Part five of the Stamp Duty Act of the Consolidation Act 199 with further explanation below. Along with this, you will have to pay this stamp duty tax on these documents as well.

• Financial documents:All types of financial records, like ATM cards, debit cards, credit cards, etc., will also have to pay duty tax on them.
• Insurance documents:All types of levies documents, such as pension documents, health documents, insurance documents, and life insurance documents, will be taxed accordingly.
• Electric Bill documents:You have to pay this tax on documents made on any electronic or electrical item, except documents related to the stock market.
• All types of Cheques:You will have to pay this tax on any cheques, whether they are from a bank or any other institution, and on all such documents.

Important Note

So, after 2 April 2007, any document filed or typed or promissory notes drawn, made, or executed (signed, sealed, or both) will not be chargeable to stamp duty tax.

When is an instrument liable to Stamp Duty?

An instrument will be liable to Stamp Duty if:

• If that document is on the list scheduled in part 5 under the act of 199,
• If the documents comply with Irish law and are signed, sealed, or stamped, this tax log will be added to them.
• Irrespective of where that document is written, if it is applied within Ireland on the following days or at a later time, it will be taxed within Ireland.

We are going to paste some examples here that will help users understand Stamp Tax Duty. Example 1:  Suppose Mary buys a property in Galway, and the seller uses it in Dublin then Mary will have to pay stamp duty. Example 2: Adam sold Ali a house in Australia for 200,000 pounds, but Ali took his documents with him to Ireland. Now Ali will have to pay stamp duty. However, since the property or house is in Australia, Ali can claim an exemption. Example 3: Adam buys something in Galway, but the seller lives in France, Ada. I will now have to pay the tax stamp duty because Adam is associated with the airline. Example 4: Suppose Jahri buys shares in an Irish company while sitting in France While the seller is sitting in France or Spain. Now, the seller uses this thing in Spain. But Jerry will have to pay stamp duty on this item because the company is Irish. Who has to pay Stamp Duty? According to the law, the person receiving the property has to pay Stamp duty. In other words, the person who is answerable, i.e., the transferee of a property, has to pay Stamp duty. There are specific properties and estates in which all persons are liable to Stamp tax. All persons are participants, such as gifts, etc., and all the parties who are in it will pay taxes. But if, in any case, the person who is accountable or the respondent dies, then he appoints the person as his representative and will pay the stamp tape on his behalf. However, if more than one person is accountable for a property or estate, then all of them will pay the tax together and also pay the Stamp duty tax separately. The accountable person for more than one property transfer type is as follows: Types for various properties: Transfer type            General Properties Accountable person Both The purchaser and transferee of the property (the person receiving the property) are liable to Stamp duty tax.