Designing Smart Contract for Electronic Document Taxation

Abstract

In recent years, we have seen a massive blockchain adoption in cryptocurrencies such as Bitcoin. Following the success of blockchain in cryptocurrency industry, many people start to explore the possibility of implementing blockchain technology in different fields. In this paper, we propose Smart Stamp Duty, a system which can revolutionize the way stamp duty (document tax) is managed and paid. The proposed Smart Stamp Duty offers significant improvements on the convenience when paying stamp duty by removing the need of physical revenue stamp. At the same time, the blockchain technology also provides the auditability of the recorded data. Smart stamp duty enables the expansion of the existing electronic stamp duty application to retail level. Smart stamp duty also enables the taxpayers to pay the stamp duty of their electronic documents. Our proposed system also enables the taxpayers to convert their electronic documents into physical documents while still maintain the ability to refer the electronic-based stamp duty payments.