--Thursday, 16 February 2006--

Stamp tax goes up

Non-belongers looking to purchase high-ticket items like land and automobiles will now face a stiffer tax penalty. As of last month, the government changed the stamp act, which covers such transactions, from 8 to 12 percent.

According to officials at Government Information Services, the stamp act covers the any sale of anything that has to be registered with the High Court Registry or has to go through the bank for a loan.

While non-belongers will see an increase, the tax for belongers will remain fixed at 4 percent. According to a release from the Office the Commissioner of Inland Revenue, which handled the implentation of the increase, items of sale will be evaluated and appraised on a case-by-case basis.

The release goes on to state that, "[Items of sale] are now charged at 12 percent of the [proposed sale value] or the market value of the property, whichever is higher." But it is not just private non-belongers who will be affected by the increase.

Foreign companies will also be hit with the 4 percent increase, while domestic companies, such as those holding BVIslander and belonger cards, will see their tax remain at 4 percent.

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