Stamp Duty for Non-Residential Properties – Ireland

Stamp Duty Advice and Compliance. Commercial Property Taxes. Non-residential Tax

As you are aware, Finance Act 2017 increased the rate of stamp duty on the transfer of non-residential property from 2% to 6% with effect from midnight on Budget Day.  The change applied to instruments executed on or after 11^th October 2017.  This dramatic tax increase will, most likely, reduce the number of commercial property transactions carried out in Ireland in 2018.

On 27^th October 2017, The Irish Revenue Commissioners published Revenue eBrief No. 94/2017 outlining the transactions eligible for the 2% Stamp Duty rate under Transitional Relief Measures:

In circumstances where a binding contract has been entered into before 11^th October 2017 the rate of stamp duty will remain at 2%, provided the following two conditions are met:

1. the instrument was executed before 1^st January 2018, and

1. the instrument contained certification that the instrument was executed on foot of a binding contract entered into before 11^th October 2017.

A person who filed a stamp duty return before the enactment of the Finance Bill and who was satisfied that the transitional measures would have applied if the Finance Bill had been enacted, had two options:

1. To file a return through the e-stamping system, pay stamp duty of 6% and be issued with a stamp certificate.  Now that the Finance Act has been enacted the filer can amend the Return, submit the relevant documents to Revenue thereby requesting a refund of 4% (i.e. the difference between the 6% and 2% rate). Please follow attached link for detailed instructions:

 https://www.revenue.ie/en/online-services/support/documents/help-guides/stamp-duty/amending-stamp-duty-return-on-ros.pdf or

2. To file a return through the e-stamping system and pay the stamp duty at the lower rate of 2%.  In this situation a stamp certificate was not be issued at this stage.

On 4^th January Revenue published guidelines on how this postponed stamp certificate can be obtained. To receive the certificate, you must amend the Return by following the link:

https://www.revenue.ie/en/online-services/support/documents/help-guides/stamp-duty/amending-stamp-duty-return-on-ros.pdf

For those who filed their Returns but did not pay the correct amount of Stamp Duty at the 2% rate, you will not have received a Stamp Certificate.

In order to obtain the stamp certificate you must amend the Return, pay the Stamp Duty of 2%, pay any Interest accruing on the late payment and pay any surcharge arising on the late filing of the Return, if relevant.

Once the payments have been processed your Stamp Certificate will issue automatically.

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.