Stamp Duty And Share Transfers: Five Key Considerations

Upon the transfer of shares in an Irish company, stamp duty must be paid on the considerable for a sale of shares or the market value in the event of a gift pursuant to the Stamp Duties Consolidation Act 1999 (the 1999 Act). The obligation to pay stamp duty is on the purchaser of the shares and the standard rate is 1% (see paragraph 3 below). Set out below are five key considerations when dealing with stamp duty in the context of a share transfer.

When does the obligation to pay stamp duty apply?

The purchaser must pay stamp duty when:

1. entering into instruments that transfer shares, stocks or marketable securities i.e. a stock transfer form;
2. entering into a written option to buy shares;