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Home :: Types of Taxes :: Stamp Duty (SD)
 

Stamp Duty

Stamp duty ordinance was enacted in Sri Lanka in 1909. Thereafter in 1982 Parliament enacted No。 43 of Stamp Duty Act to provide for the i​​mposition of stamp duty on instruments and documents and for matter​s connected therewith or incidental thereto.

Stamp Duties on immovable property and certain movable properties were devolved to the Provincial Councils by the 13th Amendment to the Constitution and stamp duties administered by the central government was suspended with effect from 1st May 2002. The government reintroduced stamp duty and enacted Stamp Duty (Special Provisions) Act No. 12 of 2006, but for only ten instruments.

Those specified instruments are :

  • an affidavit,
  • a policy of insurance,
  • a warrant to act as notary public,
  • a periodic license to carry on trade, business, profession or vocation,
  • a claim or demand made by a credit card holder on the usage of the card,
  • a share certificate on new/additional issue or transfer/assignment,
  • a mortgage for a definite sum of money which affects a property,
  • a promissory note,
  • a lease or hire of any property,
  • a receipt or discharge given for any money or other property.
​Chargeability​

Stamp Duty is charged, under Stamp Duty (Special Provisions) Act No。 12 of 2006 as amended by (Amendment) Act No。 10 of 2008 and 13 of 2011 at specified rates, on every specified instrument executed, drawn or presented in Sri Lanka; executed outside Sri Lanka in relation to a property in Sri Lanka and presented in Sri Lanka, (liability arises at the time it is presented in Sri Lanka) subject to the exemptions published in the Gazette.

Rates Exemptions
Specified in Extra Ordinary Gazette No.
  • No. 1439/3 dated 03.04.2006
  • No. 1465/19 dated 5.10.2006
  • No. 1530/13 dated 01.01.2008
  • No. 1789/9 dated 17.12.2012
  • No. 1809 /19 dated 10.05.2013
Specified in Extra Ordinary Gazette No.
  • No. 1465/20 dated 5/10/2006
  • No. 1478/7 dated 01.01.2007
  • No. 1546/7 dated 22.4.2008
  • No. 1752/17 dated 04.04.2012
  • No. 757/4 dated 09.05.2012
  • No. 1778/32 dated 04.10.2012
  • No. 1789/15 dated 18.12.2012
Schedule of Stamp Duty comprising the instrument, rate, exemption and other details
Instrument Rate (Rs.)
1. Affidavit. 50/-
2. Policy of Insurance For every Rs. 1,000 or part thereof 1/-
3. Warrant to act as Notary Public 2,000/-
4. Periodic License to carry on any trade business, profession or vocation License for sale of liquor Rs. 20,000 Other, lower of Rs. 2000 or 10% of the license fee.
5. Credit card payments For every Rs.1,000 or part thereof 15/-
6. Any share certificate issued consequent to the issue, transfer or assignment of any number of shares of any company. 5/- For every Rs. 1,000 or part thereof, of the aggregate value of such shares being the value, which in the opinion of the Assistant Commissioner/ Deputy Commissioner/Senior Deputy Commissioner, that such shares would have fetched in the open market on the date of such issue, transfer or assignment
7. Mortgage affecting any property For every Rs.1,000 or part
thereof 1/-
8. Promissory note For every Rs.1,000 or part
thereof 1/-
9. Any instrument relating to a lease or hire of any property
Provided that where the term of the lease or hire exceeds twenty years, the aggregate hire or lease payable for the whole term comprised in the lease shall be deemed to be the aggregate of the hire or lease payable for the first twenty years of such term;
For every Rs.1,000 or part thereof of the aggregate amount payable under a Hire Purchase Agreement entered into under the consumer Credit Act No. 29 of 1982.
For every Rs. 1,000 or part thereof of the aggregated rent or hire (not exceeding the sum for the first 20 years period of lease term, where it exceeds 20 years) Rs. 10/-
10. A receipt or discharge given for any money or other property Rs.25/-( Amount exceeding Rs 25,000/-)
Compounding of Stamp Duty

For the purpose of compounding, registration should be obtained from the Department of Inland Revenue. The following persons should obtain the registration.

  • any person who issue insurance policy;
  • any authority issuing licenses;
  • any service provider of Credit cards
  • any employer employing more than 100 employees
  • any other person issuing any other instrument having regard to an impracticability or inexpediency of stamping instruments of such category, at the time  and in the manner prescribed.

The compounding Authority required compounding the relevant Stamp Duty and make the remittances to the Commissioner General of Inland Revenue quarterly within 15 days from the end of the quarter.

Mode of payment

Stamp duty can be paid - by affixing stamps, paying to specified bank or compounding of stamp duty by authorized persons.

Payments should be credited to the Stamp Duty Account of Commissioner General of Inland Revenue No. 4153842 at Bank of Ceylon – Taprobane Branch

Payment of Stamp Duty on Issues/Transferor Assignment of Company Shares.
Issue of Shares
  • Complete share issue application in triplicate.
  • Get the value per share from the Income Tax file.
  • Obtain the correct Stamp Duty calculation from the relevant Officer of the Stamp Duty Unit.
  • Stamp Duty payment should be made using the specified paying-in-slips available at the Stamp Duty Unit.
  • Payment can be made by cash to the People’s Bank Account No. 204–1–001–0-0085127​ Using Department Paying in Slip, Form No. 102 S/D to Hyde Park Corner Branch.

OR

Provide:​ Pay order/Bank Draft in favour of Commissioner General of Inland Revenue with relevant document for necessary endorsement.

Note :

  • If it is an issue of subscriber/initial Share Issue application to be completed in duplicate.
  • No need to get the valuation from Income Tax file
  • According to the New Company Act value per share be determined by the Directors. 
    Therefore, resolution to be forwarded with Directors’ signature. (Secretary’s True copy not accepted).​
  • Copy of the TIN Certificate.
Transfer of Shares
  • Complete Share Transfer application in triplicate.
  • Follow the same procedures as the Issue Shares No. 2, 3, 4, 5 respectively
Payment of Stamp Duty on Mortgage Bonds, Lease/Hire/Rent Agreements
  • Stamp Duty should be paid before or at the same time of the execution of an instrument.
  • Leases and mortgages of immovable properties should be paid within 7 days from the execution. 
  • Payments should be made in favour of the Commissioner General of Inland Revenue
    • Using Department Paying in Slip, Form No. 102 S/D to Stamp Duty Account No. 204–1–001–0-0085127 at People’s Bank  by Bank draft/Pay order or Cash only.
  • ​If the payment is made by cash, forward the original and a photocopy of the instrument (deed etc) with the copy of the paying-in-slip to the stamp Duty Unit.
  • The Stamp Duty Unit will make necessary endorsement on the instrument thereon.
Transfers (including Gifts) of immovable Properties in the North Province
  • Stamp Duty on above immovable property (including gifts) in North Provinces are payable to Commissioner General of Inland Revenue.
  • Follow the same procedures as the Issue of Shares No. 2, 3, 4, 5, respectively.
Downloads​

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Forms​

Application Forms​​
Last updated: 19-09-2017