The incentive consisting of a reduced rate of stamp duty payable on the transfer of shares in family businesses and the transfers of commercial property that has been used in a family business has been extended for a further period of six months.
This rule will continue to provide further incentives to family businesses registered in terms of the Family Business Act and further complements the said Act which was introduced in 2016. The Act provides for the registration of family businesses in order for them to benefit from a number of fiscal incentives.
A reduced rate of Eur1.50 for every Eur100 or part thereof will apply to:
- Transfers made by gratuitous title by an individual who owns marketable securities issued by a company on the real value of such securities; and to
- Transfers made by gratuitous title by an individual of immovable property consisting of a commercial tenement that has been used in a family business as defined in the Family Business Act for a period of at least 3 years preceding the transfer.
when such transfers are made to individuals who are mentioned in Article 5(2)(e)(i) of the Income Tax Act.
The individuals mentioned in Article 5(2)(e)(i) of the Income Tax Act are the individual’s spouse, descendants and ascendants in the direct line and their relative spouses, or in the absence of descendants to the individual’s brothers or sisters and their descendants.
The reduced rate of stamp duty applies to transfers made by a donation that are made on or after 1st April 2017 but prior to 1st April 2018. The latter date has now been extended to 30th September 2018.