What is stamp duty?
This is a tax levied on legal instruments such as cheques, receipts, military commissions, marriage licenses, land transactions and shares.
Who is the collector of stamp duty?
Kenya Revenue Authority under Section 2 of the Stamp Duty Act (Cap 480).
What is the rate for stamp duty?
It is payable in different rates, depending of the nature of the instrument.
What happens when there is non-payment?
Non-payment of the duty results in the invalidity of the relevant transaction and any agreement signed between the parties become null and void, and the same is inadmissible in a Court of Law as evidence.
What is the due date for stamp duty?
Transaction instruments that are prepared locally, the tax should be paid within 30 days after assessment.
Documents executed abroad and sent for registration locally, Stamp Duty must be paid within 30 days of receiving the documents.
What are some of stamp duty exemption?
- Transfer of land to charitable organizations as gifts
- Transfer of property between spouses
- Transfer of family property to the members on demise of a family member in whose name the property was registered.
How does one make payment for stamp duty?
Login to iTax >> Payments >> Payment Registration >> Tax head (Agency Revenue), Sub head (Stamp Duty) >> click payment type (self – assessment) >>click on payment registration>> fill in bill reference number>> Nature of instrument>>details of the transfer (PIN) >> details of the buyer (PIN) >>details of stamp duty >>Rate of instrument >>total amount to be paid >> Mode of payment >> Submit
What is the penalty for not paying?
Failure to pay the duty and or assessed amounts leads to a fine that is assessed at five percent (5%) of the principal assessed stamp duty for every quarter from the date of the Instrument.