Stamp Duties Act

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1. Short title.
2. Interpretation.
3. Documents on which duty shall be charged.
Alteration of duties.
4. Duties and other moneys recoverable by Attorney-General.
Persons primarily liable for such duties.
5. Documents not duly stamped inadmissible.
6. Knowingly registering document not duly stamped.
7. Cancellation of stamps.
8. Bank's duty.
9. Document invalid until duly stamped.
10. Using document chargeable before same is duly stamped.
11. Collector of customs may stamp documents upon certain terms.
12. Use of impressed stamp.
13. Frauds in relation to stamps or duty.
14. Offences relating to receipts.
15. Time for taking proceedings.

Acts Nos. 6 of 1927, 14 of 1950, 3 of 1963,
11 of 1964, 25 of 1974, 22 of 1977,
G.S. 3/1975, G. 255/76, G.S. 38/79,
Act 46 of 1988

"Executed" and "execution" with reference to documents mean signed and signatured by any one or more of the parties thereto or in the case of a corporation sealed with or its seal;

"lease" includes a sub-lease, but does not include a deed of grant relating to an allotment or a certificate of title to a tofi'a;

"transfer on sale" includes every document and every decree certificate or order of any court or judge whereby any property upon the sale thereof is legally or equitably transferred to or vested in the purchaser or any other person on his behalf or by his direction.

3. (1) Subject to the exemptions contained in the Schedule there shall be raised collected and paid unto the King of Tonga for the public uses of the of the Kingdom upon and in respect of the several documents specified in column 1 of the said Schedule the several duties in column 1 or 2 of such Schedule specified, all which duties shall be denoted by Tongan adhesive postage stamps affixed to the said documents:

Provided that the duty on a cheque shall be denoted by words printed on the cheque to the effect that the appropriate stamp duty has been paid.

(2) It shall be lawful for the King in Council by resolution from time to time to add to, alter or amend the duties payable under this Act, and such addition, alteration or amendment shall be deemed to be embodied in this Act and to take effect as from the date of publication of such resolution in the Gazette.

4. (1) All duties and other moneys payable under this Act shall from and after the day on which the same become due and payable be deemed to be debts due and payable to the King of Tonga from every person liable to the payment of the same and may be recovered by the Attorney-General on behalf of the King by action in his official name in any court of competent jurisdiction, and in cases in which a money penalty without any alternative of imprisonment is imposed the court may in default of payment of the penalty inflicted inflict punishment of imprisonment not exceeding 3 months.

(2) Every person who with respect to any document of the nature mentioned in the Schedule comes within the description specified in column 3 thereof headed "Persons primarily liable" is personally liable to the King of Tonga for the payment of the duty so chargeable on such document immediately upon execution thereof.

(3) Nothing herein shall be deemed to exonerate any other person from any liability imposed upon him by or under this Act or to exempt any document from any duty or disability to which it is liable under this Act.

5. No document executed in Tonga or relating (whosesoever executed) to any property situate in or to any matter or thing done or to be done in any part of Tonga shall, except in criminal proceedings, be pleaded or given in evidence or admitted to be good useful or available in law or equity unless it is duly stamped in accordance with the law in force at the time it was first executed.

6. (1) No document which is required by law to be registered shall be registered until the same has been stamped in the manner required by this, Act.

(2) Any person knowingly registering any such document not being duly stamped shall be liable to a penalty not exceeding $20.

7. (1) It shall be the duty of any person signing any document required by this Act to be stamped to cause the same to be stamped as so required and, before any such document shall be delivered out of the hands of the person signing the same, he shall cancel the stamp thereon by writing on or across the stamp his name or initials or the name or initials of his firm together with the true date of his so writing so that the stamp may be effectually cancelled and rendered incapable of being used for any other document.

(2) Any person who acts in contravention of this section shall be liable to a penalty not exceeding $20.

8. (1) It shall be the duty of the bank on which a cheque is drawn to see that the appropriate stamp duty has been paid on the cheque and remitted to Treasury:

(2) A bank which acts in contravention to this section shall be liable to a fine of $20 for each cheque.

9. No document other than a cheque is to be deemed duly stamped unless the stamp has been cancelled in the manner prescribed in section 7 hereof or unless it is otherwise proved that the stamp appearing on the document was affixed thereto at the proper time.

10. Any person who makes, issues, transfers or negotiates any document other than a cheque chargeable with duty or pays any money accrued due in respect of any such document before the same is duly stamped shall be liable to a penalty not exceeding $40.

11. A document other than a cheque required by this Act to stamped, may be stamped after being made, given or executed only by a Collector of Customs and then only upon the terms following-

(a) within one month after such document has been made, given or executed upon the payment of the duty and a fine of $1;

(b) after the expiration of one month from the making, giving or execution of such document upon payment of the duty and a fine of $2;

12. Where the amount of duty payable on any document other than a cheque exceeds the amount of $10 the payment of the duty may be denoted by impressed stamp.

13. Any person who shall fraudulently remove or cause to be removed from any document, required to be stamped by this Act, any stamp, or shall use any such stamp or shall do or be concerned in any fraudulent act, with intent to defraud the King of Tonga of any duty chargeable under this Act, shall be liable on conviction to a fine not exceeding $200 or to a period of imprisonment not exceeding 2 years.

(b) in any case where a receipt would be liable to duty, does not give or issue a receipt duly stamped; or

(c) upon a payment to an amount the receipt for which is liable to duty, gives or issues a receipt for a less amount, or separates or divides the amount paid with intent to evade the whole or any part of the duty,

15. All proceedings for the recovery of any duties or penalties imposed by this Act may be commenced at any time within 6 months next after the omission to pay such duties, or the commission of any offence charged came to the knowledge of the complainant.

(Substituted by Act 25 of 1974,
Amended by Act 22 of 1977, G.S. 3/75,
G. 255/76, G.S. 38/79.)

COLUMN 1 The Document	COLUMN 2 The Duty	COLUMN 3 Person primarily liable
(1) AGREEMENT OR MEMORANDUM OF AGREEMENT	$	The parties thereto
Whether the same be evidence of a contract, or obligatory upon the parties from its being a written document. (Explanation: A signed invoice is a memorandum of agreement)
(a) Where the value amounts to $2.00 but does not exceed $6.00..........	.02
(b) Where the value amounts $6.00 and does not exceed $20.00................	.15
(c) Where the value exceeds $20 and also for every fractional part of $20.00............................	.25
(But not to exceed $1 on any such document).
(2) BILLS OF LADING OR RECEIPT OF OR FOR ANY GOODS, MERCHANDISE OR EFFECTS TO BE CARIED TO ANY PLACE BEYOND THE KINGDOM.		The person the goods are consigned
Bills of lading and each copy ................	.10
Receipt and each copy.....................	.05
(3) CHEQUE....................	.02	Drawee bank
(4) BILL OF EXCHANGE		The drawer or acceptor
(a) Payable on demand, or at sight, or on presentation.........	.02
(b) Payable otherwise than on demand, sight or presentation, drawn or expressed to be payable in or actually paid or endorsed or in any manner negotiated in the Kingdom for any sum not exceeding T$100.00.................	.20
for every additional T$100.00 and also every fractional part of T$100.00.................	.20
(5) PROMISSORY NOTE OF ANY KIND (Except a Bank Note or Currency Note)		The drawer or acceptor
(a) For any sum not exceeding T$10.00	.02
(b) Exceeding T$10.00 and not exceeding T$50.55..........	.10
(c) For every additional T$50.00 and also for every fractional part of T$50.00.........	.10
Exemptions
All Bills of Exchange or Promissory Notes issued by any bank for Government purposes to the Treasurer.
(6) ORDERS UPON THE TREASURY For the payment of money drawn by the person to whom the payment is due in favour of any other person	The same rate of duty as a promissory note.	The drawer
(7) LEASE OR AGREEMENT FOR A LEASE OR ANY WRITTEN DOCUMENT FOR THE TENANCY OR OCCUPANCY OF ANY LANDS OR BUILDINGS, THE FOLLWING DUTIES IN RESPECT OF THE RENT AT THE RATE PER ANNUM:		The lessee or tenant
(a) Where the rent does not exceed T$50.00...............	.50
(b) Where the rent exceeds T$50.00 and does not exceed T$100.00	1.00
(c) Above T$100.00, for every T$100.00 and also for every fractional part of T$100.00...............	1.00
(8) CONVEYANCE OR TRANSFER		The transferee
(a) By sale of any lease or sub-lease, 10 per centum of the amount of purchase money agreed to be paid for the transfer of such lease or sub-lease............................as in column 1
(b) Of a lease or sub-lease by gift or for a consideration other than purchase money, 12.5 per centum of the total aggregate of rent payable over the remaining term, not including any renewal which may be granted, of the said lease or sub-lease...............................as in column 1
(c) On the sale of any buildings, fences, growing crops or livestock not included in the sale price of a transfer of lease or sub-lease by passing with possession of land 10 per centum of the amount of purchase money agreed to be paid.	As in column 1
(9) MORTGAGE, BOND, DEBENTURE OR COVENANT (a) Being the only or principal or primary security for the payment of any money not exceeding T$100.00	.75	On a mortgage the mortgagee: on a bond, the obliger; on a debenture, the person issuing: on a covenant, the parties to the covenant or any of them.
For every additional T$100 and also for every fractional part of T$100.00	.75
(b) Being the security for repayment of a loan or loans to be made from time to time, the amount or amounts of the loans not being specified.......	$20.00
(c) Transfer or assignment of any mortgage, bond, debenture or covenant.	The same rate of duty as (8) (a).
(d) Being a collateral, or auxiliary or additional or substituted security or by way of further assurance for the above mentioned purposes -
Where the principal or primary security is duly stamped....................	.75
(e) Reconveyance, release or discharge of any such security as aforesaid or the benefit thereof or of the money thereby secured.................................	.75
(f) Where any further money is added to he money already secured......................	Duty on the amount of increase at same rate as for principal security.
(g) Being a variation of the principal security without increase of the money already secured and the principal security is already stamped...............	.75
(10) RECEIPT Given for or upon the payment of money -	$	The person giving the receipt.
amount to T$4.00 or upwards but not exceeding T$100.00..............	.02
Exceeding T$100.00 or upwards but not exceeding T$200.00...............	.05
Exceeding T$200.00............	.10
Exemption
Receipts given for or upon the payment of money to or for the use of the Government of Tonga.
Receipts endorsed upon any document duly stamped with ad valorem duty under this Act acknowledging the receipt of the consideration money therein expressed.
Receipts or discharges given by any person for the payment of wages or salary.
Receipts given for contribution for charitable institutions or religious bodies.

Tonga Consolidated Legislation

Stamp Duties Act