DUTY ON DONATIONS OF MARKETABLE SECURITIES AND IMMOVABLE PROPERTY USED FOR BUSINESS (EXEMPTION) ORDER

DUTY ON DONATIONS OF MARKETABLE

SECURITIES AND IMMOVABLE PROPERTY USED

FOR BUSINESS (EXEMPTION)

SUBSIDIARY LEGISLATION 364.15

DUTY ON DONATIONS OF MARKETABLE

SECURITIES AND IMMOVABLE PROPERTY USED

FOR BUSINESS (EXEMPTION) ORDER

2nd May, 2016

LEGAL NOTICE 131 of 2017, as amended by Legal Notices 82 of 2018

and 320 and 412 of 2018, 281 of 2019, 427 of 2020, 460 of 2021, 366 of

2022, 289 of 2023, 325 of 2024 and 283 of 2025.

The title of this order is the Duty on Donations of

Marketable Securities and Immovable Property Used for Business

(Exemption) Order.

(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.

DUTY ON DONATIONS OF MARKETABLE

SECURITIES AND IMMOVABLE PROPERTY USED

FOR BUSINESS (EXEMPTION)

This order applies to a transfer by gratuitous title that is

made on or after the 1st April 2017 but prior to 1st January 2027.

(1) Any transfer by gratuitous title claiming benefits in

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 the notice

required in terms of the Duty on Documents and Transfers Act and the

Duty on Documents and Transfers Rules has been submitted to the

Commissioner for Revenue on the form or other means provided by

the Commissioner on or before the 31st December 2026.

(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 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

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.

DUTY ON DONATIONS OF MARKETABLE

SECURITIES AND IMMOVABLE PROPERTY USED

FOR BUSINESS (EXEMPTION)

When the relief from duty under this order is forfeited as

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

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 under this order not been claimed and availed of.

(1) In the event that duty on a transfer becomes chargeable

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