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candy asked in 社會及文化語言 · 1 decade ago

stamp duty

A sold property to B in consideration $7.8m + 5% of B's turnover for next 2 years subject to a maximum consideration of $10m.

The market value of property was $8m on the date of transaction.

i would want to ask the stamp duty is use the mkt value or considersation to cal ?

many many thanks

2 Answers

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  • 1 decade ago
    Favorite Answer

    As the difference between the selling price and market value is only $0.2m, the stamp duty will probably base on the selling price of $0.78m. However, if the value is finally assessed by Inland Revenue Departement to be $8m, then the stamp duty will base on this amount.

    In practice, the Inland Revenue will seldom do that.

    Remark: The stamp duty will only be levied on the value of the property and not on B's turnover.

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  • 1 decade ago

    It should be an economics question.

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