The Stamp Duty Ordinance imposes Stamp Duty on the rental of motor vehicles including motorcycles and scooters at a rate of 12% and exclude lease to own/hire purchase transactions.
There are no qualifications for registration and as such registration in mandatory through the Vehicle Hire Stamp Duty Registration Form provided for ease of registration by the revenue Department.
VHSD payments are due on or before the 21st of each month for the month prior. A tax remittance form is collected from the Revenue Department for each tax period due to be paid on or before the 21st of each month for the month prior. Failure to complete remittance and payment by the 21st will immediately result in a penalty of 50% of the tax less than 30 days overdue. Taxes outstanding after 30 days but less than 60 days are subject to 100% penalty rate. The penalty rate will continue to increase to 400% after 2 months.
Businesses operating seasonally are still required to file a nil return where no tax has been collected due to temporary closure and give notice of period of closure in writing to the Revenue Department.
Businesses are required to maintain proper books and records and are subject to period audits as taxes remitted are on a self-assessed basis.
VHSD registrants are also required to give notice of changes to the Revenue Department including:
- Change of location
- Change on any details on the initial application and registration forms
- Temporary closure
- Change of ownership
More details can be obtained from Vehicle Hire Stamp Duty Brochure or contacting the Taxpayer Services of the Revenue Department.