E-Stamping
E-Stamping is a new stamping system which has been introduced by the Revenue Commissioners to replace the existing stamping system. The aim of the new e-Stamping system is to provide a more cost effective and efficient stamping system. The new system will apply to all instruments which require stamping and where stamp duty is payable. There are two ways to use the new system. Firstly you can log on to Revenue Online System-ROS (if you are already registered, alternatively you can register as a new user) and file an instrument and pay stamp duty as applicable, using the e-Stamping Return. If you do not wish to use ROS, then you can file a paper stamp return by post or by hand with the Revenue Commissioners.
E-Stamping Return
To avail of using the E-Stamping Return, you must log onto ROS. If you are not already registered for ROS, you can do so by following the ROS Registration process on ros.ie. Once registered and logged on, you can select stamp duty from the list of taxes. The systems will guide you through the various fields using drop down menus, which means that you will only need to complete the sections which apply to your particular case. Once all the information is completed correctly, the E-Stamping system will calculate the stamp duty which may be payable. If accepted, you may proceed, file the return and pay the appropriate stamp duty. You may save your workings offline however, if you are not ready to file yet. Also, you may file the return but choose not to pay by Direct Debit, you may send in the duty payable by cheque or electronic transfer. Once payment is received by the Revenue Commissioners and they are satisfied with their review, they will issue a Stamping Certificate. This Certificate replaces the holograph strip which previously was affixed to the instrument once stamp duty had been paid. Under the new system if you pay the stamp duty by Direct Debit, you will receive the Stamp Certificate in your ROS inbox and this should be printed off and affixed to the instrument. If you choose to pay by EFT or cheque, the certificate will be posted out to you. If an adjudication is required, it may take longer than normal for the certificate will be issued.
The main advantages of the E-Stamping Return are as follows:
- The new system applies to all stamp duty cases (E.g sale of new or second hand house, company reconstructions, transactions between related parties, instruments where consideration is uncertainable)
- You can save and amend your work offline before filing
- Help Text available online
- Constant availability of online system
- Variety of payment options
- Can view previous filings and workings
- Amendments can be made returns which have been filed
- Validation checks available
For those who choose not to use the e-Stamping System on ROS a Stamp Duty Paper Return must be completed and sent to the Revenue. The stamp Certificate will be issued to the filer once the case has been processed and stamp duty has been received. There are a number of different Stamp Duty Return forms which apply to different stamp duty cases. These forms are as follows:
- SDR1-Single property on a single conveyance, transfer & long term lease
- SDR1-Exchanges and transfer of two (or more) properties in a single conveyance
- SDR2-Conveyances and transfers for stocks and marketable securities
- SDR3-Other stampable instruments
- SDCF-Clawback cases
The Stamp Certificate
This certificate is in A4 paper format which will be sent by through ROS or by post when a return has been stamped and stamp duty has been completed. The Certificate should be affixed to the instrument to which it relates to. In a case where an adjudication is required under Section 20SDCA, 1999, the Revenue may request supporting documentation and the instrument itself before issuing the certificate. The Certificate will contain details which will only relate to the instrument it relates to. It will also contain a certificate number and document ID Number which will be required if the certificate needs to be verified or replaced at any time.
Exempt Instruments
Instruments which are not subject to stamping are as follows:
- An Instrument which creates joint tenancy between spouses in the family home
- Instruments to which Section 106B of the SDCA 1999 applies
- A lease of a dwelling house for any indefinite term or a term not exceeding 35 years which is exempt from Stamp Duty
- Any instrument which is exempt from stamp duty, other than:
- An instrument to be adjudicated under Section 20 SDCA 1999
- An instrument operating as a conveyance or transfer, on sale or by way of gift, of land or interest on land
- A Lease of land for a term exceeding 30 years
- An Assignment of a lease of land where the unexpired term of the lease exceeds 30 years.
For adjudication cases, the return must be filed within 30 days of the date the instrument was first executed. Payment of stamp duty must then be paid within 14 days of the Revenue's assessment being issued. In any other cases where adjudication is not required, the stamp return must be filed and stamp duty paid within 44 days of the date the instrument was first executed. If stamp duty is underpaid penalties and interest will apply to the instrument until the date the full amount due has been paid.
OmniPro is Ireland's largest independent solution provider for accountants. We are 100% Irish owned and operated and we facilitate accountants to add value to their practices, their clients and their businesses.
We provide a range of technical advisory services in the areas of Auditing, Financial Reporting, Compliance, Investment Business, Company Law & Company Secretarial. Our services are tailored to meet the specific requirements of each the Irish Accounting Institutes (CAI, ACCA, CPA & IIPA). Our nationwide CPD seminars cater for Industry & Practising Accountants across a wide range of CPD topics. A range of Company Incorporation services are supplied by our Company Formations department including Annual Compliance services.
Article Source: http://EzineArticles.com/?expert=Micheal_O'Neill