Stamp Duty

At remittance creation time, a stamp duty amount can be calculated for every bill of exchange payment processed.  Whether or not stamp duty is calculated is determined by the remittance procedures defined for the particular payment type on Reference File category F45.  If the stamp duty flag on this category is set to 'Y' (yes), every company/location using this payment type must have at least one stamp duty bracket setup on Reference File category F32.

The stamp duty bracket number is a user-assigned, two digit number.  Each bracket is defined by a stamp duty amount, number of bracket days, limit minimum bracket, and a limit maximum bracket.  None of the brackets for the company/location can overlap and the brackets must be in ascending order by limit bracket amount.  Two brackets can have the exact same minimum and maximum amounts, however, the number of bracket days in the higher numbered bracket must be greater than the number of bracket days in the lower numbered bracket.  If the payment amount falls between the limit minimum bracket and limit maximum bracket, the Bank Remittance Creation program checks to see if the difference in days between the payment date and the due date is less than or equal to the number of bracket days.  If all of the criteria is met, then the stamp duty in this bracket is applied to the payment.  For example:

BRACKET 01

BRACKET 02

BRACKET 03

Using the data from the tables above, if payment amount is equal to $400 and the difference in days between the payment date and the due date is 30, then you will be charged the stamp duty assigned to BRACKET 01.  If the difference in days between the payment date and the due date is 60, you will be charged the stamp duty assigned to BRACKET 02.

The stamp duty amount is stored on the Bank Remittance record for the payment.  In order to determine the total stamps and duty collected for a particular company/location, you can run the Stamp Duty Report (DM610A).

Related

• Prepare Stamp Duty Report Procedures