INLAND REVENUE DEPARTMENT REMINDS VEHICLE RENTAL ESTABLISHMENTS OF THEIR STAMP DUTY OBLIGATIONS

Providenciales, Turks and Caicos Islands – Thursday, 23^rd July 2026: The Office of the Collector of Stamp Duty, supported administratively by the Inland Revenue Department within the Ministry of Finance, Investment & Trade, wishes to remind all businesses engaged in the hire of motor vehicles of their obligations under the Stamp Duty Ordinance (Cap. 19.05) in respect of stamp duty payable on vehicle-hire agreements.

Vehicle hire agreements are governed under Schedule 1, Head 1(3) of the Ordinance, which applies to agreements for or relating to the supply on hire of any motor vehicle.

The Department encourages all vehicle rental operators to familiarize themselves with the legislative requirements and to ensure that all applicable Stamp Duty is properly assessed, remitted, and paid within the prescribed timeframes.

Stamp Duty Rate

Stamp Duty is payable at a rate of 12% of the total rental value of every qualifying vehicle hire agreement.

The total rental value includes, but is not limited to:

• Base rental charges;
• Insurance surcharges;
• Airport concession fees;
• Environmental fees;
• Additional or underage driver fees; and
• Any other mandatory charges forming part of the rental consideration.

Transactions Subject to Vehicle Hire Stamp Duty

Vehicle Hire Stamp Duty applies to:

• All vehicle rental agreements;
• Short-term and long-term vehicle hire arrangements;
• Agreements where ownership of the vehicle does not transfer; and
• Online, walk-in, written, and electronic rental agreements.

Transactions Not Subject to Vehicle Hire Stamp Duty

The following transactions are not subject to Vehicle Hire Stamp Duty:

• Bicycle rentals;
• Hire-purchase or lease-to-own arrangements, where ownership ultimately transfers to the hirer; and
• Taxi services.

Filing Returns

The Department provides a monthly Stamp Duty Remittance Form to facilitate the reporting and reconciliation of stamp duty payable on vehicle-hire agreements. Operators are responsible for accurately calculating the duty payable on agreements executed during the relevant reporting period.

The monthly remittance arrangement is an administrative facility and does not alter the statutory requirement that each agreement be stamped, and the applicable duty paid, within 21 days after execution. Where the statutory deadline occurs before the monthly reporting date, the agreement must be submitted and the duty paid by the earlier statutory deadline.

The Stamp Duty Remittance Form is available monthly from the Inland Revenue Department. Assistance with completing the return is available upon request.

Remittance of Stamp Duty

Stamp Duty returns and payments for each reporting period must be submitted on or before the 21st day of the following month.

Payments may be made to the Treasury by:

• Cheque;
• Debit or credit card;
• Bank draft; or
• Cash.

Persons Liable

The Ordinance provides that all parties and all others executing the agreement are liable for the payment of Stamp Duty. In practice, however, vehicle rental companies generally act as the remitters because they prepare the rental agreements and collect the rental proceeds.

Time for Stamping

Vehicle hire agreements must be stamped within 21 days after execution.

Penalties for Late Stamping

Businesses are reminded that failure to stamp agreements within the prescribed period will result in the following statutory penalties:

Voluntary Compliance for Delinquent Businesses

The Inland Revenue Department encourages all vehicle rental businesses with outstanding Vehicle Hire Stamp Duty obligations to contact the Department without delay to bring their accounts up to date.

Businesses that have not been filing monthly Stamp Duty returns, remitting Stamp Duty, or stamping vehicle hire agreements as required under the Stamp Duty Ordinance, 2021 are encouraged to voluntarily disclose their outstanding obligations and work with the Department to achieve compliance.

The department’s officers are available to assist businesses in reviewing their filing history, determining outstanding Stamp Duty liabilities, calculating the applicable statutory penalties, and providing guidance on the filing and payment process.

Businesses are encouraged to take advantage of this opportunity to regularize their affairs before the Department undertakes compliance reviews or enforcement activities. Voluntary compliance helps ensure that businesses meet their statutory obligations while promoting fairness and equity across the vehicle rental industry.

Need Assistance?

The Department remains committed to assisting taxpayers in meeting their obligations under the law. Businesses requiring further information or assistance with the completion of their monthly returns are encouraged to contact the Inland Revenue Department.

For additional information, please visit the Inland Revenue Department's website at www.gov.tc/revenue.

You may also contact the Department using the following details:

Providenciales Office: (649) 338-5216

Grand Turk Office: (649) 338-2061

Family Islands: District Commissioner's Offices

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.