Stamp Duty Exemption Comes Into Effect In The Bahamas

                           Amanda Banks, Tax-News.com, London

An amendment to the Stamp Act which provides for exemption from payment of stamp duty on certain financial transactions involving licensed lending institutions has gone into effect in the Bahamas, the Ministry of Finance has confirmed.

As of July 1, 2008, application may be made for exemption from stamp duty for any of the following: purchase of a dwelling home; purchase and financing of a dwelling home and mortgage; purchase and financing of a dwelling home combined with other domestic loans and mortgages; purchase of vacant land for the construction of a dwelling home; transfer of a home mortgage; and, transfer of a home mortgage combined with other domestic loans.

The government stated that applications for stamp duty exemption in respect of these transactions must be accompanied by a completed affidavit, a copy of a National Insurance card, the first page, signature page, and back sheet of conveyance, and/or first page, signature page, and back sheet of mortgage.

In New Providence, applications must be made to the Financial Secretary at the Ministry of Finance, or to a Family Island Administrator.

The Ministry reminded applicants that purchase or construction of the home must be in respect of a first time home ownership, and the home must be intended for owner occupancy.

揂 dwelling house includes a condominium unit or a duplex, exclusive of any part that is not owner-occupied,?stated the Ministry.

揟he property must not be used for commercial purpose," it added.