Stamp Duty Interest

Stamp Duty is payable upon execution of the document, and should be presented to the Lands & Survey Department immediately thereafter. Outstanding Stamp Duty on a number of documents will attract interest if not submitted and stamped within 45 days of execution. We will not include any periods where we are holding your documents for assessment within this 45 day period, however it will recommence after we have notified you of an amount of Duty outstanding.

Interest Rates

Interest is chargeable at a rate of;

  • 10% per annum for the first month or part of a month
  • 20% per annum thereafter

upon the total amount of unpaid Stamp Duty.

Calculating Interest

  • Interest will be incurred from the 46th day after execution (the document being signed by all parties to it).
  • The 'first month' for calculation purposes commences on the 46th day, with the intial 45 day period being excluded from the calculation.
  • Interest is rounded to the nearest Cayman Islands Dollar.
  • A month is considered 30 calendar days.
  • The 366th day in leap years is excluded from the calculation.
  • Interest is not compounded.

Example

A Transfer of Land is executed on 1 January, with a Stamp Duty liability of CI $100,000.

If received by Lands & Survey:

  • by 15 February - No Interest payable

    Reason: The document is recieved within the 45 day stamping period.

  • by 1 March - Interest of CI $411 is payable

    Reason: The document is 15 days overdue, at a rate of 10% per annum.
    Calculation: Daily rate @ 10% per annum: (CI $100,000 x 10%) / 365 days = CI $27.40 per day.

    Total Interest:
    (CI $27.40 x 15 days) = CI $411

  • on 19 April - Interest of CI $2,685 is payable 

    Reason: Document is 64 days overdue, at a rate of 10% per annum for the first 30 days - AND - at a rate of 20% per annum for the remainding 34 days.
    Calculation: Daily rate @ 10% per annum: (CI $100,000 x 10%) / 365 days = CI $27.40 per day
    Daily rate @ 20% per annum: (CI $100,000 x 20%) / 365 days = CI $54.80 per day

    Total Interest:
    (CI $27.40 x 30 days) = CI $822
    (CI $54.80 x 34 days) = CI $1863.20

    Rounded Total             CI $2,685