According to tax laws, housing tenancy agreements or property transaction contracts (commonly known as “private deeds”) are not required to pay stamp duty. Nevertheless, if the recipient (i.e. the less or seller) uses them to serve as the receipts of payment, the private deeds must be affixed with revenue stamps at an amount worth four thousandths of the payment, said the Local Tax Bureau of Taichung City Government.

Stamp duty is levied on four kinds of instruments, namely receipts for monetary payment; deeds for sale of movables; contracting agreements; and contracts for sales, transfer, and partition of real estate. Housing tenancy agreements or property transaction contracts are not required to pay stamp duty unless they are used as evidences for tax payment or for property rights application to the competent authority. Moreover, a note (a bill of exchange, a promissory note and a check) can be exempted from stamp duty, as long as the name and account number of the note is shown on the receipt of payment, said the Local Tax Bureau.

The Local Tax Bureau reminds taxpayers that all the taxable documents for stamp tax must be affixed with revenue stamps in full amount, which should be cancelled then and that if the tax amount is too huge to affix revenue stamps, you can pay the stamp tax at the Local Tax Bureau or any of its branch offices closest to you. The other alternative is to file a collective tax return at the website of Local Tax Bureau of Taichung City Government (http://www.tax.taichung.gov.tw) after your application for payment of a huge sum of stamp duty is approved with a password. If you still have any questions, please call 0800-086969 (toll-free) for the call center of Local Tax Bureau.