Does this mean that SMEs will not have to pay any stamp duty on mortgage, financial lease, tenancy agreement and any other instrument?

Yes, so long as those instruments relates to their business, including the purchase or transfer of a vehicle, any agreement and export entries for business purpose.

How does an SME qualify for the exemption?

To qualify for this exemption, the applicant (SME’s) will have to be a registered business that must have a business license, is tax and customs compliant and will be required to provide a Statutory Declaration confirming they have a gross turnover not exceeding $500,000.

Copies of financial statements must be attached where applicable. The policy intention for this incentive is to assist the SME’s. Post assessment audits will be conducted to verify declarations. Severe penalties will be imposed where taxpayers make false declarations or scheme to evade this tax.

Will stamp duty also apply on transfer of motor vehicles?
Yes stamp duty will also apply on transfer of motor vehicles. The transfer of ownership of vehicle will attract 3% stamp duty. This will be covered under the transfer instrument.

Can you please clarify what are the conditions for the first home buyers to be exempt from paying stamp duty?
First home buyers must satisfy the following conditions in order to be exempted from paying stamp duty:

The buyer must be a Fiji citizen

The property being purchased must be the first property in Fiji or elsewhere

The house can have 1 or more than 1 flat

What if I sell my home within 5 years of purchase; will I have to pay back the stamp duty waived?

Effective January 1, there will be no stamp duty payable if the house is being sold within 5 years from purchase. Every Fiji Citizen will be allowed one exemption per life time upon purchase of a home.

What is a crop-lien agreement and will it be subject to stamp duty?

Crop-lien is where farmers borrow money from lenders to purchase their goods such as tools for growing their crop and enter into agreement in exchange for a lien on the farmer’s forthcoming harvest. Stamp duty will be exempted on such crop lien agreements.

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