E-stamping was launched on 30 December 2009 and completely changed the way stamp duty operates. Three new processes for stamp duty were introduced:

1. a mandatory return for stamp duty-on-line ROS screens or a paper return
2. a new form of stamp-the stamp certificate and
3. an electronic system whereby practitioners can file and pay and download a stamp certificate on-line, anytime. Currently, 90% of all stamp duty returns are made on-line.

Stamp duty arises when an instrument is executed. Broadly speaking, this includes a deed of transfer (or a lease) in the case of ‘real’ property or a stock transfer form in transfers of marketable stocks and shares.

Prior to e-stamping, practitioners presented the instruments to Revenue for assessment and the subsequent impression of a special Revenue stamp on the face of the instrument to denote it had been stamped.

It is important to note that CREST (the electronic system for stamp duty for electronic share transfers) and duties collected under composition arrangements (such as those on ATM cards, insurance levies etc) remain unaffected by e-stamping.

Stamp Duty Returns & Stamp Certificates

Since the launch of e-stamping, a stamp duty return must be completed in respect of every stampable instrument and Revenue is no longer required to examine the deed or instrument in most cases, unless the adjudication process applies.

Practitioners can file stamp duty returns via ROS or in paper format to receive a stamp certificate that replaces the former impressed stamp in every case. The stamp certificate is then affixed to the deed or stock transfer form to denote it has been stamped.

Practitioners (and other third parties) can verify the status of a stamp certificate by using the ROS 3^rd party search facility on-line.

The e-stamping System

Although there are more than 150 different stamp duty scenarios (depending on the type of instrument, type of property, consideration and any reliefs that might apply as well as the dates of execution and filing) e-stamping typically guides the user through six intuitive screens to capture all the data needed to arrive at a correct calculation of stamp duty (and any penalties and interest that may apply).

Data entry is effected by selecting from drop-down menus on each screen to properly capture the particulars affecting correct assessment of the duty. The only typing required on the user's part is valid tax reference numbers, a description (or address) of the property being transferred and the amount of the consideration. The e-stamping system will then display a summary & calculation screen that shows the correct stamp duty due, no matter how complicated the transfer.

From the Accountant’s Perspective

Tax Reference Numbers and Tax Types

Users must provide valid tax reference numbers (and indicate the tax type that applies to each number) for every party in a stamp duty return. This applies in all cases, whether the return is being made electronically or on paper.

Revenue recommends practitioners ensure that clients provide valid tax reference numbers as early as possible in advance of making a stamp duty return. This is best achieved by asking clients to furnish Revenue documentation that shows the tax reference number and the tax type for which it is registered-VAT, PAYE, Income Tax, CT etc.

Typically, accountants encounter stamp duty events in the transfer of marketable stocks and shares. The main difficulty in providing tax reference numbers in this area is where a party (an individual or a company) is non-resident and does not have an Irish tax reference number.

Where a non-resident individual is involved, you must firstly obtain a PPSN (Public Personal Services Number) from the Department of Social Protection (cis@welfare.ie) and then register it with Dublin Stamping District (see the “Supports” section hereunder), to register it as a valid tax reference number.

A different system operates for non-resident companies; you should advise Dublin Stamping District as soon as possible of the registered name and address of the non-resident company to obtain a special system number that will allow you to use the system for a stamp duty return, only.

Please see the “Supports” section of this article for more information on tax reference numbers.

ROS: TAIN certs and the offline system

Many individual accountants who file tax returns via ROS use a TAIN ROS digital certificate. E-Stamping is NOT available to TAIN cert holders because 95% of all stamp duty payments are typically made by filers (solicitors) from a “client Account”. TAIN cert holders are advised to apply for a ROS Business Digital Certificate to access e-stamping (Lo-Call 1890 20 11 06).

Some accountancy firms operate systems where practitioners hold TAIN certificates while the firm itself holds a ROS Business Digital Certificate. In these cases, the practitioners can avail of the “offline” e-stamping system to prepare stamp duty returns within the firm before filing them on-line via the firm's ROS Business cert.

Revenue's “e-stamping User Guide” (“Supports”) sets out detailed instruction on how to download the offline e-stamping system.

Stamp Duty Refunds

Where a refund of stamp duty is made, the cheque automatically issues to the filer of the return, not to the individual client. This is in line with Revenue accounting procedures. It is important to bear this in mind from an office procedure perspective when applying for a refund on foot of a filed stamp duty return.

Supports

Comprehensive information on all aspects of the system can be accessed on Revenue's website under stamp duty.

Chapter 5 of the “Additional Guidance Notes on e-stamping” (in the Guidance Notes Section) sets out detailed information on tax reference numbers.

The “Quick Guide to e-stamping” provides a useful overview of how the system works and the “e-stamping User Guide for ROS” gives screen-by-screen guidance on how to register for ROS, how to set up an on-line payment facility and how to download and use the offline facility.

Dublin Stamping District operates a stamp duty Lo-Call helpline from 10:00 am – 4:30pm Mon-Fri (1890 48 25 82).

Revenue also operates a special ROS Lo-Call helpline (1890 20 11 06) for ROS-technical enquiries.

e-mail E-StampingProject@revenue.ie (Revenue's secure e-mail service is recommended).

Mick O'Hanlon Revenue Stamp Duty