131 tal-2017

L.N. 131 of 2017

DUTY ON DOCUMENTS AND TRANSFERS ACT

(CAP. 364)

Duty on Donations of Marketable Securities and Immovable

Property Used for Business (Exemption) Order, 2017

BY VIRTUE of the powers vested by article 23 of the Duty on

Documents and Transfers Act, the Minister for Finance has made the

following order:-

The title of this order is the Duty on Donations of

Marketable Securities and Immovable Property Used for Business

(Exemption) Order, 2017.

(1)

Notwithstanding any other provision of the Duty

on Documents and Transfers Act

(a)

where an individual owns marketable securities

issued by a company, the transfer of which marketable securities

would be chargeable to duty, duty shall be chargeable at a rate

(referred to hereinafter as "the reduced rate") of one euro and

fifty cents (€1.50) on every one hundred euro (€100.00) or part

thereof of the real value of those marketable securities where

those marketable securities are transferred by gratuitous title by

the individual to persons referred to in article 5(2)(e)(i) of the

Income Tax Act

(b)

where an individual transfers by gratuitous title

immovable property being a commercial tenement as defined in

article 1525 of the Civil Code (hereinafter referred to as

"business property"), that had been used in a family business as

defined in the Family Business Act for a period of at least three

(3) years preceding the transfer, in assessing the duty chargeable

in terms of the Duty on Documents and Transfers Act, if any

such duty is chargeable, it shall be charged at the reduced rate

where that business property is transferred by gratuitous title by

the individual to persons referred to in article 5(2)(e)(i) of the

Income Tax Act.

(2)

When the reduced rate is applied on the transfer by

gratuitous title of marketable securities or business property

referred to in this rule, no other exemption or relief from duty

shall apply to the said transfer.

This order applies to a transfer by gratuitous title that is

made on or after the 1st April 2017 but prior to 1st April 2018.

(1)

Any transfer by gratuitous title claiming benefits in Transfer by

gratuitous title.

terms of this order shall be made by public deed

Provided that benefits in terms of this order shall only be

granted in respect of a transfer by gratuitous title where, in the case of

a transfer of business property, the form contained in the First

Schedule of the Duty on Documents and Transfers Rules, or in the S.L. 364.06

case of a transfer of marketable securities, the form contained in the

Sixth Schedule of the Duty on Documents and Transfers Rules, has

been delivered to the Commissioner on or before 31st May 2018.

(2) In the case of a transfer falling within the scope of

paragraph (b) of rule 2, the individual transferring the business

property shall provide to the notary who receives the deed of such

transfer a report prepared by a certified public accountant holding a

practicing certificate in auditing giving assurance that the business

property being transferred by gratuitous title has been used in a

family business as defined in the Family Business Act for a period of Cap. 565

at least three (3) years preceding the transfer.

(3) The Commissioner for Revenue may also request such

further information, forms and documentation as he may deem fit, by

means of a notice in writing within the period, not being less than

thirty (30) days, specified in the said notice.

The relief granted under this order shall be forfeited and Relief.

the provisions of rule 6 shall apply if the individual to whom the

transfer by gratuitous title was made, transfers inter vivos the

marketable securities or the business property, as the case may be,

within a period of three (3) years immediately following the date of

the transfer by gratuitous title

Provided that in the case of a business property, the relief

granted under this order shall also be forfeited and the provisions of

rule 6 shall apply if the business property is not used within a

business carried on by the said individual, for a period of three (3)

years immediately following the date of the transfer by gratuitous

title.

When the relief from duty under this order is forfeited as Relief from

provided in rule 5, the provisions of rule 2 shall not apply and the duty.

duty chargeable on the transfer referred to in that rule shall be the

duty that would have been chargeable in accordance with the

provisions of the Duty on Documents and Transfers Act had the relief Cap. 364.

under this order not been claimed and availed of.

(1)

In the event that duty on a transfer becomes Duty on a

chargeable in accordance with rule 6, the excess, if any, of the amount transfer.

of the duty so chargeable over the amount of duty that was paid on the

deed of that transfer shall become payable to the Commissioner by

the person to whom the transfer was made within a period of thirty

(30) days after the date on which the event resulting in the forfeiture

of the relief granted under this order takes place

Provided that where the duty referred to in this rule is

payable in respect of business property or part thereof that had

previously been transferred by gratuitous title to the particular

individual or individuals, and the Commissioner issues a certificate

attesting that the said business property that has been transferred inter

vivos by the said individual or individuals, is replaced within one (1)

year by an immovable property used solely for a similar purpose in

the family business as defined in the Family Business Act (hereinafter

referred to as the "replacement property"), in assessing the duty

chargeable in respect of the replacement property, duty payable in

accordance with this rule shall be allowed as a deduction against duty

chargeable on the acquisition of the replacement property

Provided further that the deduction allowed in terms of the

preceding proviso shall in no case exceed the amount of duty

otherwise chargeable, but for the provisions of this rule, on the

acquisition of the replacement property.

(2) The provisions of rules 5 and 6 shall apply to the

replacement property in the same manner as they apply to the

business property and references to "business property" in the said

rules shall, where applicable, be construed as referring to the

replacement property.

€0.27