STAMP DUTIES
					Lease agreements

Stamp Duties
Lease Agreements

Tel 061 239330 Office

Stamp duties are payable on the aggregate amount of rent over the period of lease, subject to a limit on the following scale -

      (a)     Where the period does not exceed five years:  N$ 5.00 for every N$ 1000.00 of part  thereof.     
      (b)     Where the period exceeds five years but not ten years:  N$ 8.00 for every N$ 1000.00 or part hereof.  
      (c)     Where the period exceeds ten years but not twenty years:  N$ 10.00 for every N$ 1000.00 or 
                part thereof.   
      (d)     Where the period exceeds twenty years:  N$ 15.00 for every N$ 1000.00 or part thereof.

Where a lease is entered into for a definite period with no provision for its renewal, the lease must be stamped for the full period.  Thus, where the lease runs for a stated period of 24 months at a rental for N$ 1000.00 per month, stamp duty must be paid on N$24 000.00 on the scale of N$ 5.00 for every N$ 1000.00.  Where the lease runs for an indefinite period, it must be stamped for two years only.  Where the lease is entered into for a definite period (called the original period for purposes of stamp duty) with a provision for its renewal, the lease must be stamped for a period equal to the aggregate of the following periods, namely:  
 
        (a)         the original period    
        (b)         any definite periods of continuance, renewal or extension provided for in the lease; and  
        (c)         if the lease is to continue in force for an indefinite period following the original period, a 
                     period of two years.

This means that where a lease is entered into for 12 months and it can be renewed indefinitely thereafter, the lease must be stamped for a period of three years.

 Where the aggregate amount of rent payable under a lease exceeds the full selling value of the property 
 leased, duty is payable only on the amount of the full selling value. The duty on a lease must be denoted 
 on the original agreement, and this must be retained by the lessor.

 Where the lease is terminated before the end of the period for which duty has been paid, a refund of a proportionate amount of the duty can be claimed.  Stamp duty of N$ 1.00 must also be paid on the copy of the original contract.