Stamp Duty on Share Transfers – Exemption Deferred
Friday, June 8, 2012 by Wakeful Partners |
As you may be aware, in South Australia any share transfers in respect of companies incorporated in South Australia need to be stamped and stamp duty paid either at the Share Transfer Rate of 0.6% of the market value of the shares or if the company is a Land Rich Entity at the normal conveyancing rates (based on the gross value of the land).
This requirement also means that any share transfers also need to be lodged for opinion with RevenueSA irrespective of whether the company has any assets including if all the company solely acts as a corporate trustee of trust.
The stamp duty on share transfers in respect of non land rich companies was to be abolished on 1 July 2012 but as part of the recent 2012-2013 State Budget announcement the stamp duty exemption on share transfers has been deferred.
Given the continued stamp duty issues in respect of companies incorporated in South Australia, if the company was incorporated in Victoria and provided the company is not a land rich entity then no stamp duty is payable on the share transfer, irrespective of whether the company carries on business in South Australia or amount of assets in South Australia (except in respect of land).
In addition there is no requirement to actually lodge the share transfer with the Victorian State Revenue Office and so share transfers of Victorian incorporated companies can be easily achieved without any requirement to stamp or lodge the share transfers with any State Revenue Office (except in respect of South Australian land rich entities which will require stamp duty to be paid in South Australia).