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
- ballerina8197Lv 71 decade agoFavorite 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.
- 1 decade ago
It should be an economics question.