Amount of stamp duty in Japan
When you purchase a real estate in Japan, realtor will make real estate sales contract paper.
On the contract paper, buyer and seller attach, paste a revenue stamp ( 収入印紙= Shuu nyuu Inshi ).
Buyer and seller or realtor go to post office to buy a revenue stamp and after they receive stamp, they paste the stamp on the contract paper and affix seal or sign on the revenue stamp, called Keshi in ( 消印 ).
In this way, you can pay stamp duty legally.
The amount of stamp duty is different from sales price of real estate.
( there is tax reduction. These figures reflect this tax reduction. Assumed 1 USD = 100 yen)
|Described sales amount||Tax amount|
|From $10,001 to $50000||$10|
|From $50001 to $100,000||$50|
|From $100,001 to $500,000||$100|
|From $500,001 to $1,000,000||$300|
Negligence of stamp duty of Japan
If sales price of a real estate is $146,000, buyer and seller have to buy revenue stamp of $100.
This duty does not affect validity of sales contract itself.
But, if persons do not attach a revenue stamp on contract paper, and if tax office notices the negligence, persons have to pay 3 times amount as penalty. In this case, it is $300.
And when persons attached revenue stamp, but did not affix seal nor signature on the stamp, persons have to pay same amount to stipulated as penalty. In this case, it is $100.
Stamp duty on Receipt
Revenue stamp is also required on receipt.
When buyer pays purchase money to seller and seller receives it, seller will issue receipt ( Ryo shu sho = 領収書 ) to buyer.
And when the seller engages in the transaction as business, seller has to paste revenue stamp on receipt.
So, when the seller is company or entrepreneur, she has to paste revenue stamp on receipt.
The amount of revenue stamp is different from sales price.
|When the sales price is less than 50,000 yen||tax exemption|
|from 50,000 yen||less than 1 million yen||200 yen|
|more than 1 million yen||less than 2 million yen||400 yen|
|more than 2 million yen||less than 3 million yen||600 yen|
|more than 3 million yen||less than 5 million yen||1,000 yen|
|more than 5 million yen||less than 10 million yen||2,000 yen|
|more than 10 million yen, less than 20 million yen||4,000 yen|
|more than 20 million yen, less than 30 million yen||6,000 yen|
|more than 30 million yen, less than 50 million yen||10,000 yen|
|more than 50 million yen, less than 100 million yen||20,000 yen|
How to save amount of Stamp duty of Japan
Realtor may make 2 original copy of contract paper and Buyer and seller sign their address, name and affix seal and each person will keep original paper.
In this case each original paper requires revenue stamp.
However even if they make one original paper, it is not problem. In that case, seller will keep photocopy and purchaser will keep original one.
In this way, they can save amount of stamp duty.
Or you might create a sales contract electronically (i.e., as data on a computer).
The seller and buyer electronically sign the sales contract stored in the computer.
Then you do not have to pay stamp tax on the sales contract.
As for electronical sales contract, you can see this page.
If you hope to acquire assist in real estate transaction, you can contact me.
akiyama(a)japan-law-tax.com Tomohiko AKIYAMA