CfR Guidance on COVID Recovery measures
The Commissioner for Revenue has issued guidance on the recovery measure announced on the 8th June 2020 concerning the reduced rates of income tax and duty on documents and transfers on certain property transfers, specifically:
- a reduction in the stamp duty of the acquisition of immovable property from 5% to 1.5%; and
- a reduction in the final withholding tax on the sale of immovable property from 8% to 5%.
See MIT News 9 June 2020.
The measure will be implemented through subsidiary legislation that is expected to be published shortly. According to the guidance, the legislation will apply retroactively as of 9 June 2020, and confirms that the reduced rates may be applied before the publication of the relative Legal Notices, provided that the deed specifies that the reduced rates are being applied in terms of the 2020 recovery measure.
The guidance clarifies the manner in which the relevant stamp duty and tax is to be computed and the scope of the reduced rates, which apply to:
- transfers inter vivos of immovable property or of any real right over such property;
- where the transfer is made on or after the 9th June 2020 but before the 1st April 2021; and
- provided the notice of the final deed in relation to the transfer is given to the Commissioner for Revenue by the 30th April 2021.
Download the CfR Guidelines here.