By virtue of Legal Notice 320 of 2018, Duty on Donations of Marketable Securities and Immovable Property Used for Business (Exemption) (Amendment) Order 2018 published on 9 October 2018, the deadline to benefit from the reduced stamp duty rate of 1.5% payable on intra-family donation of marketable securities or on donation of a commercial tenement used in a family business to a qualifying family member has been extended from 30 September 2018 to 31 December 2018. A qualifying family member is deemed to be one’s spouse or partner in a civil union, descendants and ascendants in the direct line and their relative spouses or civil union partners, or in the absence of descendants, to one’s brothers or sisters and their descendants.
Post 31 December 2018, the stamp duty rate payable on intra-family donation of marketable securities in a company will be of 2% if the company is not a property company and 5% if the shares are held in a property company. Furthermore, the stamp duty payable on a donation of a commercial tenement used in a family business will revert back to 5%.
The reduced stamp duty rate will only apply if the donations are effected through a public deed registered with a Notary. If the qualifying family member (donee) transfers the donated shares or the commercial tenement within 3 years of acquisition the benefit will be revoked and standard rates will be applied retrospectively.