Stamp Tax (Taiwan)
This page summarizes Taiwan’s current stamp tax system, focusing on documents commonly seen in real estate transactions and practical handling.
1. What is Stamp Tax?
Stamp tax is a tax levied on written instruments with legal effect. When signing contracts involving amounts of money or property value (for example, a real estate sale and purchase agreement), stamp tax must be paid by affixing stamp tax stamps or using the electronic stamp tax service.
2. Legal Basis
- Main law: Stamp Tax Act
- Competent authority: Local tax bureaus of city/county governments
- Obligor(s): The contracting parties (commonly buyer and seller). If the contract does not specify who bears the tax, practice often splits it evenly.
3. Taxable Instruments
| Instrument Type | Examples | Rate / Amount |
|---|---|---|
| Property transfer instruments | Real estate sale contract, gift contract, exchange contract | 0.1% (1‰) of the contract amount |
| Lease instruments | Building/land lease agreement | 0.1% (1‰) of total rent for the full term |
| Contracting/works instruments | Construction contract, renovation contract | 0.1% (1‰) of the contract amount |
| Bank receipts / certificates | Deposit slips, bills of exchange, etc. | Specific tax amount based on face value (often a fixed amount) |
4. Common Real Estate Scenarios
| Contract Type | Tax Base | Rate | Payer | Notes |
|---|---|---|---|---|
| Building sale & purchase agreement | Contract amount (transaction price) | 0.1% | Often split 50/50 between buyer and seller | Example: NT$10,000,000 × 0.1% = NT$10,000 |
| Lease agreement | Total rent for the full term | 0.1% | Landlord or tenant (as agreed) | Example: Annual rent NT$1,000,000 → stamp tax = NT$1,000 |
5. How to Pay
Option A: Physical stamp tax stamps
- Purchase stamps at a post office or authorized sellers.
- Affix stamps to a prominent place on the first page of the contract and apply a cross-page seal (chop) where required.
Option B: Electronic stamp tax (online)
- File and pay through the local tax online filing system.
- Print the “electronic stamp tax payment certificate” and attach it to the contract.
6. Exemptions / Non-taxable Cases
| Category | Description |
|---|---|
| Contracts between government agencies | Exempt from stamp tax |
| Public welfare / charity / education contracts | Exempt if statutory requirements are met |
| Gift agreement (no consideration) | Generally not treated as taxable under common practice |
| Inheritance | Not a contract act; stamp tax not applicable |
7. Practical Tips (For Real Estate Transactions)
- Remind about cost sharing: If the contract does not specify who pays, practice often splits the burden evenly, and each party should keep proof of payment.
- Use the contract amount: Tax is typically assessed on the amount stated in the written contract.
- Copies also require proof: If both parties keep a copy, each copy should have stamps affixed or an electronic payment certificate attached.
- Go electronic when possible: For high volume cases (e.g., project sales), electronic stamp tax improves efficiency and record keeping.
8. Example
- Transaction price: NT$12,000,000
- Two copies of the contract (one for buyer, one for seller)
- Calculation: 12,000,000 × 0.1% = NT$12,000
- → Each copy should have (or attach proof of) stamp tax of NT$12,000