What is stamp duty?
Stamp duty is the national tax imposed on taxable documents prescribed by law. Tax documents include various contracts, bills, receipts and so on. Each time a document is created, taxation is imposed and tax payment obligations are incurred for those who created it.
What is a contract?
To put it simply in rephrasing the contents defined by the NTA, it says “even if the name is not a contract, it is included in the contract if it signifies the formation of the contract. Actually, based on the application form and the order form, sometimes there is also an accounting process done at everyone’s workplace.
Types of contracts to be taxed and their tax payments amounts
In fact, what kinds of contracts are subject to taxation and how much it is taxable can be confirmed by the HP of the National Tax Agency. This time we will only draw out the types of representative taxable documents and present the taxable amount.
Regarding contracts with many interactions in particular, the stamp tax amount is also determined according to the amount written in the contract. In other contracts, there are many taxable amounts that have become fixed. For certain contracts concerning the assignment of real estate and contracts for construction work, the rate and the due date is reduced.
When a contract is issued electronically?
In recent years, it is not uncommon for contracts to be exchanged by electronic means. Actually, it is interpreted by law that “taxable documents are written documents and electronic documents are not included”. For that reason, stamp duties are not imposed on electronic documents.
In fact, with regard to promissory notes etc., companies that reduce the burden of stamp duties have increased considerably by converting them into electronic bonds rather than issuing promissory notes.
Similar trends are seen with contracts. We recommend that if possible you check with the tax authorities etc., beforehand on “How to create an electronic contract without causing taxation problems”.
Who is the burden of stamp duty?
The “person who created the taxable document” is the burden of stamp duty. As far as the receipt is concerned, it is the shop that received the payment to create a receipt, so the shop should stamp the receipt. In the case of a contract, it seems that both parties are responsible for one stamp each since both parties create and store one copy each.
Place of stamp purchase
You can buy it from the Legal Affairs Bureau, post office or convenience store. However, most convenience stores only have the most frequently used 200 yen stamp.
In case you forgot to affix the revenue stamp to a taxable contract
If the stamp duty tax payment has been excluded, and it is discovered in the tax examination, you must be responsible for 3 times the incorrect tax on the original stamp duty. If you report voluntarily, the incorrect tax will become 1.1 times. Either way, since it will be higher than the original tax amount, it is necessary to regularly make an accurate tax payment. Even if you have forgotten to affix the stamp, the contract itself will be effective.
When affixing the stamp and mistake is made
When affixing a stamp higher than the original tax amount or stamping a contract that does not correspond to the taxable document, submit “stamp duty tax error payment confirmation application” to the tax office head of tax payment site. You can get refund by doing that. In addition, at the time of application, “documents and seal stamped with error” and “representative’s signature in case of corporation” are also necessary.
Since contracts that are considered to be taxable documents are broadly defined, after understanding the details correctly, it should be confirmed whether there is no tax document requiring stamp duties in the documents currently taken. The amount of stamp to be pasted is according to the written amount in the contract of transfer, and many other contracts have fixed amount. Also, note that contracts with electronic documents are not subject to taxation. In addition, please remember that the original burden of stamp duty is the creator of the contract.
If tax payment is excluded, tax overdue will arise from this tax error. In addition, if you affix a revenue stamp that is more expensive than this tax, you can request a refund from the tax office. There are many important points about revenue stamps that are taxed on contracts, but if there is an error in processing, additional tax collection and extra work occur, so please refer to this article for tax processing to avoid mistakes.