When Do I Pay Stamp Duty on Transferring Shares in a Company?
When do you and when do you not, need to pay stamp duty on shares when your business is being sold or restructuring?
Whether your business is going through a restructure or sale, or in other circumstances you are dealing with shares in a company, it is vitally important that you consider whether stamp duty is payable.
Often shares in a company can be very valuable, and people don’t consider the duty implications or think about who may be responsible to pay duty.
So, what is required?
Generally, you do not have to pay stamp duty (transfer duty) for a transfer of shares in a private or public corporation, subject to some exceptions.
There are two exceptions to this general rule –
- If the company has land-holdings in Queensland of $2 million or more, then landholder duty is payable (formerly known as land rich duty); and
- If the company holds property on trust, then corporate trustee duty may be payable.
These are complicated requirements for each of these duties. If you are considering any transaction relating to the transfer of company shares or interests or units in a trust, then we strongly recommend that you contact our Nambour solicitors. Sunshine Coast’s Butler McDermott Lawyers can provide you with expert legal and taxation advice and services.