No stamp tax is imposed when an electronically signed electromagnetic record is sent by email (NTA written reply case)If you email a contract, do you not need a revenue stamp?
An NTA written reply case states that when a company attaches its electronic signature to an electromagnetic record documenting the progress of a construction order through to completion and sends it by email or similar means, it is not subject to stamp tax. Only "documents" that qualify as taxable documents are taxed, and electromagnetic records are not included in documents.
Key points
- Stamp tax applies to documents listed in the table of taxable items. It covers documents written on paper or similar media, and does not include electromagnetic records.
- The question in the reply concerns the treatment of stamp tax when an electromagnetic record with an electronic signature is sent by email or similar means.
- The reply is of a general nature and does not necessarily apply as is to individual cases. Different treatment may apply to specific transactions.
What to do in practice
- Check how the rules apply when concluding contracts as electronic data, for each type of contract your company uses.
- Where practice changes, such as printing out a paper original to hand over, check with your tax accountant or tax office.
On paper contracts, you sometimes stick a sticker called a "revenue stamp" in place of paying tax. But the National Tax Agency explains that data sent electronically is not paper, so it is not subject to this tax.
- ○Applies: A printed paper contract
- ×Does not apply: Data with an electronic signature, attached to an email
- ×Does not apply: Contract data that exists only inside a computer
Points
- The revenue stamp tax applies to papers with writing on them.
- Data on a computer or phone does not count as a "document (paper)".
- However, it can change depending on the case, so it's safest to ask if you're unsure.
What the words mean
- Revenue stamp (収入印紙)
- A sticker put on contracts and the like to show that tax has been paid.
- Electronic signature (電子署名)
- Something like a digital seal put on data to show who made it.
- National Tax Agency (NTA): NTA: Treatment of Stamp Tax on Electromagnetic Records Sent by Email to Business Partners
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.