Stamp duty ordinance was enacted in Sri Lanka in 1909. Thereafter in 1982 Parliament enacted No 43 of Stamp Duty Act to provide for the imposition of stamp duty on instruments and documents and for matters connected therewith or incidental thereto.
Stamp Duties on immovable property and certain movable properties were devolved to the Provincial Councils by the 13th Amendment to the Constitution and stamp duties administered by the central government was suspended with effect from 1st May 2002. The government reintroduced stamp duty and enacted Stamp Duty (Special Provisions) Act No.12 of 2006, but for only ten instruments. Those specified instruments are:
- An affidavit
- A policy of insurance
- A warrant to act as notary public
- A periodic license to carry on trade, business, profession or vocation
- A claim or demand made by a credit card holder on the usage of the card
- A share certificate on new/additional issue or transfer/assignment
- A mortgage for a definite sum of money which affects a property
- A promissory note
- A lease or hire of any property
- A receipt or discharge given for any money or other property
Stamp duty can be paid - by affixing stamps, paying to specified bank or compounding of stamp duty by authorized persons.
Compounding of Stamp Duty
Commissioner General of Inland Revenue may permit following persons to collect stamp duty from relevant parties and to remit stamp duty
- Policy of Insurance - Person issuing Insurance Policy
- Licenses - Issuing Authority
- Credit Cards - Service Provider
- Payments to Employees – Employer
- In any other situation - Depending on circumstances (Persons drawing, making, or executing such Instrument)
A person enthused to compound the Stamp Duty is required to make certifications on the relevant instrument on a rubber stamp. The compounding Authority required compounding the relevant Stamp Duty and make the remittances to the Commissioner General of Inland Revenue quarterly within 15 days from the end of the quarter.
Payments should be made to the Stamp Duty Account of Commissioner General of Inland Revenue No. 4153842 at Bank of Ceylon – Taprobane Branch.
Provide: Pay order/Bank Draft in favor of Commissioner General of Inland Revenue with relevant document for necessary endorsement.
Last Updated on: 19-05-2010