Change in the process of stamping documents
The Tax Department announced changes in the process of the stamping of documents with fixed stamp duty fees which applies from 29 June 2020. The announcement provides that the stamping of such documents must be completed by the interested party and the interested party must purchase the actual stamps from relevant authorised representatives only and not from the District Offices of the Tax Department.
The new process for the stamping of documents with fixed stamp duty fees is as follows:
- Calculation and purchase of stamp duty
The interested party must calculate the stamp duty fee and purchase the actual stamps from an authorised representative.
- Affixing and cancelling the stamp duty on the document
The stamp(s) must be affixed on the document and must be cancelled so that it cannot be re-used. The cancellation of the stamp duty on the document is completed by drawing a double diagonal line on the stamp, inserting the initials of the interested/contracting party, as well as, inserting the date of the cancellation of the stamp duty. It is noted that a document bearing stamp duty which is not cancelled is not considered stamped.
- Overdue stamping for fees up to EUR 35
a.If the stamp duty is not paid within 30 days from the date of first signing or drafting of the document, a fine equal to the amount of the stamp duty fee is imposed (e.g. if the stamp duty fee is EUR 35, a fine of EUR 35 is imposed).
b.If the stamp duty is not paid within 6 months from the date of first signing or drafting of the document, a fine equal to twice the amount of the stamp duty is imposed (e.g. if the stamp duty fee is EUR 35, a fine of EUR 70 is imposed).
It is noted that in both cases, the stamping must be completed before a competent official or the court registrar.
- Overdue stamping for fees up to EUR 35
a.It is noted that a stamp duty of up to EUR 2 is affixed on each copy of a stamped document. The stamp duty must be cancelled in accordance with the process mentioned in point 2 above.
b.If the stamp duty fee payable for the original document does not exceed EUR 2, then the stamp duty which will be paid for the true copy of the document is equal to the stamp duty which is paid for the original document.
c.The indication “TRUE COPY” must be written on the copy of the document by the interested/contracting party who cancels the stamp duty of the original document.
d.The true copies must be presented along with the original document, in order for these to be considered duly stamped.
The Tax Department has further announced that from 27 July 2020 the process for the stamping of documents which is based on the value of the document/agreement relating to leasing of real estate/rent agreements, employment contracts, contracts entered into by legal persons and contracts with a fixed value (such as sale and purchase agreements, contracting agreements, loan agreements, public contracts) is amended. It is noted that this new process concerns the initial agreements and not any additional/supplementary agreements.
The new process entails the following:
- Specific tool for the calculation of stamp duty
A specific “tool for the calculation of stamp duty” has been created for the stamping of documents which is based on the value of the document. This can be found on the Tax Department’s website.
- Stamping of documents/contracts when the stamp duty fee does not exceed EUR 100
a.Stamping of documents within the deadline (within 30 days from the signing or drafting of the document)
- The interested party calculates the stamp duty fee by using the tool for the calculation of stamp duty.
- The interested party sends via email to the Tax Department the document titled “Calculation of Stamp Duty” which is produced after the calculation of stamp duty.
- The interested party buys the stamp duty by an authorised representative and not by the District Offices of the Tax Department.
- The interested party affixes and cancels the stamp duty in the same manner as described in point 2 above (regarding the stamping of documents with fixed stamp duty fee).
b.Overdue stamping and issuance of true copies
The same procedures described in points 3 and 4 above (regarding the stamping of documents with fixed stamp duty fee) apply in relation to the overdue stamping of documents and the issuance of true copies.
- Stamping of documents when the stamp duty fee exceeds EUR 100
- The interested party calculates the stamp duty fee by using the tool for the calculation of stamp duty.
- The interested party prints out the document titled “Calculation of Stamp Duty” and adduces the document to the District Offices for Tax Collection for the payment of the stamp duty.
- The interested party presents the receipt of payment along with the documents to be stamped to a competent official who will stamp the documents.
It noted in the announcement that the correct stamping of the documents is the responsibility of the taxpayer (self-taxation) and the Tax Officer has the right to conduct any checks that he considers necessary to ensure tax compliance.
