The Basics of Stamp Duty and Revenue’s new E-stamping

What is Stamp Duty?

Stamp Duty is a duty payable on a wide range of legal and commercial documents, including (but not limited to) conveyances of property, leases of property, share transfer forms and certain agreements. Depending on the nature of the document, the duty is either ad valorem or of fixed amount. Prior to 31 December 2009, the duties in this category were denoted by means of stamps affixed to or impressed on the document. Following the introduction of the E-Stamping system, all instruments must be stamped by means of attaching the stamp certificate, obtained under the E-Stamping system, to the instrument.

What is E-Stamping?

E-Stamping is the Revenue's latest on-line pay-and-file service in ROS. If you are registered as a business cert holder to use ROS, you can use e-Stamping to file stamp duty returns electronically, to make on-line payments to Revenue and to receive a stamping certificate. You will be able to file a stamp duty return, pay the stamp duty and receive the stamp in the same on-line transaction. If you are registered for ROS, you can access e-Stamping anywhere, anytime to file a stamp duty return and payment.

What is a Stamp Duty Return?

The stamp duty return is a form that, when completed properly, provides all the information required by Revenue to assess the stamp duty liability and to stamp an instrument. The return is a statutory requirement and may be completed and filed with Revenue in electronic or paper format. An instrument cannot be stamped in the absence of a properly completed return. The information contained in the stamp certificate is based on the information provided by the return.

What is a Stamp Certificate?

The stamp certificate is the new form of stamp that has replaced the foil/hologram stamp form since 30th December 2009. Unlike the foil/hologram stamp, which was heat-sealed onto the instrument by Revenue, the stamp certificate is a separate single-page document which is affixed to the instrument by the practitioner to denote that it has been stamped. When issued electronically, it must be printed down from the practitioner's ROS inbox. Where the practitioner has filed a paper return, the stamp certificate will be printed off by Revenue and posted to the practitioner. Each stamp certificate bears a unique identification for security and validation purposes.

Should I present an instrument to Revenue for stamping?

No. You should complete a stamp duty return for each stampable instrument and deliver it to Revenue together with the appropriate payment of stamp duty (and interest and penalties if they apply). You will present the instrument to Revenue only in respect of cases involving adjudication, expression of doubt, where a refund is claimed, or on foot of a Revenue requirement but you must first complete and file a stamp duty return in any of these cases. When a return is filed as an adjudication case, you will receive a letter setting out what information should be furnished to Revenue to allow a formal assessment to duty to be completed. The documents can be sent on receipt of this letter or they can be sent to Revenue at the same time as the stamp duty return.

Will Revenue check instruments and returns after stamping?

Yes. Revenue monitors all returns filed, whether electronic or paper and a certain proportion of returns are selected for post-stamping audits. Revenue will contact the accountable person (the purchaser) in the first instance advising them that their return has been selected and requesting them to provide us with the records to support the information filed in the return, such as the instrument and evidence required to support relief’s etc.

How long must records be retained for Revenue audit purposes?

Records must be retained for 6 years.

How do I file a return on-line?

You file the e-Stamping return by logging onto your ROS account and selecting stamp duty from the tax heads listed. ROS will bring up the return screens for e-Stamping. You complete the return by selecting from drop-down menus that list options relating to the type of instrument, type of property and reliefs that apply. The selections you make from these screens should reflect the facts and circumstances as set out in the instrument that you wish to stamp. The e-Stamping system will navigate you automatically to the correct screens for completion and it will calculate the stamp duty automatically based on the entries you have made, and interest and penalties if they apply.

Tax Reference Number Requirement

A stamp duty return under the new system must include an Irish tax reference number for each party to the instrument which is being stamped. If any of the parties do not have an Irish tax reference number then these will have to be applied for. It will not be possible to complete the stamp duty return without these, so if they are required, it is important that they are applied for at the earliest stage to avoid any late filing penalties.

Can I file on-line and pay by cheque or Electronic Fund Transfer?

Yes. You can file on-line and pay separately through the post by cheque or EFT but you must quote the Document ID to which the payment refers.

If you do not use e-Stamping to file a return electronically, you must complete a paper return for every stampable instrument and deliver that to Revenue, together with a payment for the duty amount. There are different versions of the return tailored to meet different circumstances. If you do not have a tax agent and are required to file a manual/paper return and pay stamp duty please contact us and we will advise you of the correct form to use or happily become your agent for the purposes of filing the return.

When do interest and penalties apply?

Interest and penalties will apply if a return is not filed and duty paid within 44 days of executing the instrument, or if a return is not filed within 30 days of executing an instrument for adjudication and/or where duty is not paid within 14 days of notification of assessment to duty. Interest and penalties will apply until the full amount is paid on any unpaid tax balance.

For more information contact Danny Cox on +353 1 675 3144 or email dannycox@citytrust.ie