Construction Contract

Stamp Duty for Construction Contracts

Calculate the revenue stamp required for construction work contracts. Reduced rates (until March 31, 2027) applied by default.

What is Japanese Stamp Duty (印紙税)?

In Japan, certain documents — including contracts, receipts, and promissory notes — are subject to Stamp Duty (印紙税 / Inshi-zei), a national tax levied on paper documents. To pay this tax, a revenue stamp (収入印紙) of the required amount must be physically affixed to the document and cancelled.

The tax amount depends on the document type and the contract value or receipt amount. For example, a contract worth over 10 million yen may require a stamp of 10,000 to 20,000 yen. Real estate sales contracts and construction contracts benefit from reduced rates until March 31, 2027.

Importantly, electronic documents (PDFs, e-contracts) are exempt from stamp duty, since the tax applies only to paper. This is a major reason many Japanese businesses are shifting to electronic invoicing and contracts.

Calculate Stamp Duty

Document Type

Contract / Receipt Amount (tax-inclusive, yen)

Consumption tax portion (only if separately stated, yen) * NTA No.7124 For Type 1, 2, and 17 documents, if the consumption tax amount is separately stated (e.g., "Consumption tax: XX yen"), that amount can be deducted from the taxable base (NTA No.7124). Tax-exempt businesses cannot claim this deduction — leave this field at 0. Also leave at 0 if tax is not separately itemized.

No contract amount stated

Apply reduced rate (for contracts created by March 31, 2027)

Tax-exempt receipt conditions (check if applicable)

Credit card payment receipt (no cash received)

Electronic format (PDF, email, etc. — not paper)

Non-business receipt (private transaction, etc.)

Receipts matching these conditions are exempt from stamp duty (NTA No.7105).

Stamp Duty ¥0

About Stamp Duty for Construction Contracts

Construction work contracts are classified as Type 2 documents under Japan's Stamp Tax Act. This covers building construction, civil engineering, equipment installation, demolition, and other construction work defined under the Construction Business Act. Amounts below 10,000 yen are tax-exempt; above that, stamp duty increases in tiers.

Reduced Rate Provision

Under the Special Taxation Measures Act, Article 91, construction work contracts created by March 31, 2027 qualify for reduced stamp duty rates (savings begin at contract amounts over 1,000,000 yen). This tool applies reduced rates by default.

Rate Comparison Table (Standard vs. Reduced)

Contract Amount (yen)	Standard Rate	Reduced Rate	Savings
Up to 1,000,000	200	200	-
1,000,001 - 2,000,000	400	200	-200
2,000,001 - 3,000,000	1,000	500	-500
3,000,001 - 5,000,000	2,000	1,000	-1,000
5,000,001 - 10,000,000	10,000	5,000	-5,000
10,000,001 - 50,000,000	20,000	10,000	-10,000
50,000,001 - 100,000,000	60,000	30,000	-30,000
100,000,001 - 500,000,000	100,000	60,000	-40,000
500,000,001 - 1,000,000,000	200,000	160,000	-40,000
1,000,000,001 - 5,000,000,000	400,000	320,000	-80,000
Over 5,000,000,000	600,000	480,000	-120,000

FAQ

Are purchase orders and order acknowledgments subject to stamp duty?

An order acknowledgment (注文請書 — the contractor's written acceptance) is a Type 2 taxable document. A purchase order (注文書 — the client's written request) is generally non-taxable, but may be taxable if its content constitutes proof of contract formation.

What about amendment contracts (increase/decrease)?

The taxable amount on an amendment contract depends on how it is drafted (NTA No.7123, for Type 2 documents):

Original contract identified, difference stated (increase): The increase is the taxable base
Original contract identified, difference stated (decrease): Treated as having no stated amount — flat 200 yen
Original contract identified, only new total stated: The new total is the taxable base
Original contract not identified: The new total is the taxable base

What about architectural design fees?

Architectural design contracts are not classified as construction work and therefore do not qualify for reduced rates (standard Type 2 rates apply). However, "design-build" contracts that include both design and construction are treated as construction work.

What about electronic contracts?

Tax-exempt. For large-scale construction projects where stamp duty can reach hundreds of thousands of yen, switching to electronic contracts offers significant cost savings.

→ Calculate stamp duty for other document types (real estate, receipts, etc.)

Construction invoices and quotations with PASELLY

Generate detailed invoices and quotations as PDFs. Switch to electronic contracts to eliminate stamp duty entirely.

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