Taxes & Services

1. Stamp Duty - Introduction

Stamp duty is collected under Section 37 of the North Western Province Finance Statute No. 08 of 1990.

Stamp duty is charged on:

Every instrument relating to the transfer of immovable property situated within the North Western Province.
Every document presented or filed in legal proceedings instituted in any court established by law within the North Western Province of Sri Lanka.

2. Tax Rates

Type of Property / Instrument	Value / Limit	Applicable Tax Rate
Sale and Transfer of Immovable Property	Property value up to Rs. 100,000/=	Rs. 3 for every Rs. 100 or part thereof of the value
Sale and Transfer of Immovable Property	For the value exceeding Rs. 100,000/=	Rs. 4 for every Rs. 100 or part thereof of the value
Gift Deeds (Gifts)	Property value up to Rs. 50,000/=	Rs. 3 for every Rs. 100 or part thereof of the value
Gift Deeds (Gifts)	For the value exceeding Rs. 50,000/=	Rs. 2 for every Rs. 100 or part thereof of the value

3. Determination of the Value of Immovable Property

1. Determination of Value for Stamp Duty on the Sale of Property

In relation to any property other than immovable property transferred as a gift, and in relation to any relevant date, the value shall be the price that, in the opinion of the valuer, could reasonably be obtained for that property in the open market on that date.

2. Determination of Value for Stamp Duty on a Gift Instrument

A. In relation to any immovable property acquired by the transferor on or before 31.03.1977 and subsequently gifted:

The price which, in the opinion of the valuer, could have been obtained for the property if it had been sold in the open market on 31.03.1977, plus the cost of any improvement, alteration or addition made to the property after 31.03.1977 and before the date of the instrument by which the property was gifted, or
The price which, in the opinion of the valuer, could have been obtained for the property if it had been sold in the open market on the date of the instrument by which the property was gifted.

→ The lower of the above two amounts shall be taken as the value.

B. In relation to any immovable property acquired by the transferor after 31.03.1977 and subsequently gifted:

The price which, in the opinion of the valuer, could have been obtained for the property if it had been sold in the open market on the date on which the transferor acquired the property, plus the cost of any improvement, alteration or addition made to the property after its acquisition by the transferor and before the date of the instrument by which the property was gifted, or
The price which, in the opinion of the valuer, could have been obtained for the property if it had been sold in the open market on the date of the instrument by which the property was gifted.