Stamp Duty on Share Transfers

UPDATE
Please see Circular 255 for details of changes to Stamp Duty announced in the State Budget 2005-2006.

The transfer, either by way of sale or gift, of shares in a company that is not quoted on a recognised Stock Exchange is subject to stamp duty on the market value of the shares or consideration, whichever is greater. The rate of stamp duty charged is $0.60 cents per $100 or part of $100.

The transfer of shares not by way of sale or gift may be exempt from stamp duty depending on the nature of the transaction.

From 1 July 2001 stamp duty is not charged on the transfer of shares for companies that are quoted on the Australian or other recognised Stock Exchanges.

What is required?

The share transfer document must be stamped.

The types of share transfers listed below can be stamped by an authorised RevNet user via RevNet (if you are not an authorised RevNet user contact RevenueSA for more information). All of these share transfers are exempt from Stamp Duty:

• In Specie Distribution;
• Trustee to Trustee (no other doc);
• Trustee to Trustee with Stamped Deed;
• Pursuant to a Will or Intestacy.

You can refer to the Stamp Duty Document Guide for more detailed notes on these document types.

All other share transfers are required to be presented to RevenueSA to have the appropriate stamp duty determined. The share transfer document must be submitted with a completed Opinion form, which can be obtained from RevenueSA, together with:

• a copy of any valuation of shares made in connection with the transfer. Refer to Circular No 166; or
• a certified Balance Sheet and detailed Profit and Loss statements for the previous three years; and
• if different classes of shares have been issued, the rights of each such class must be fully stated and a copy of the Memorandum and Articles of Association must be produced; and/or
• if a Nominee Company, the following details are required:
  
       - latest Balance Sheet or detailed schedule of assets and liabilities;
       - description of property which is held in trust; and
       - market value of property.

Rate of Stamp Duty

Stamp duty on the transfer, either by way of sale or gift, of shares not quoted on a recognised Stock Exchange is charged at the rate of 60 cents per $100 or part of $100.

From 1 July 2009 the rate of duty will be reduced by half to 30 cents per $100, and duty will be abolished from 1 July 2010.

Click here to go to the on-line calculator.

This page was last reviewed 7 October, 2008