Stamp Tax Law of the People’s Republic of China

(Adopted at the 29th meeting of the Standing Committee of the 13th National People’s Congress on June 10, 2021)

Article 1 in the territory of the People’s Republic of China Units and individuals that establish taxable vouchers and conduct securities transactions are taxpayers of stamp duty and shall pay stamp duty in accordance with the provisions of this Law.

Units and individuals that form and use taxable vouchers outside of the People’s Republic of China shall pay stamp duty in accordance with the provisions of this law.

Article 2  The taxable certificate mentioned in this law refers to the contract, property rights transfer documents and business account books listed in the”Stamp Duty Item and Tax Rate Table” attached to this law.

Article 3  The securities transaction mentioned in this law refers to the transfer of stocks and stock-based depositary receipts that are traded on stock exchanges established in accordance with the law and other national securities trading venues approved by the State Council.

Securities transaction stamp duty is levied on the transferor of securities transactions, not on the transferee.

Article 4   The tax items and rates of stamp duty shall be implemented in accordance with the”Stamp Duty Items and Tax Rate Table” attached to this Law.

Article 5 The tax calculation basis of stamp tax is as follows:

(1) The tax calculation basis of taxable contract is the amount listed in the contract, excluding the listed value-added tax

(2) The tax calculation basis of the taxable property rights transfer receipt is the amount listed in the property rights transfer receipt, excluding the listed value-added tax;

(3) The tax calculation basis of the taxable business account book is the paid-in capital (share capital) recorded in the account book, capital reserve Total amount;

(4) The tax calculation basis for securities transactions is the transaction amount.

Article 6   If the amount is not specified in the taxable contract or transfer of property rights, the tax basis for stamp tax shall be determined according to the actual settlement amount.

If the tax basis cannot be determined in accordance with the provisions of the preceding paragraph, it shall be determined according to the market price at the time of the written contract and the transfer of property rights; according to the law, government pricing or Government-guided price shall be determined in accordance with relevant national regulations.

Article 7 If there is no transfer price in a securities transaction, the tax basis shall be calculated based on the closing price of the securities on the previous trading day at the time of transfer registration; if there is no closing price, the tax basis shall be calculated based on the face value of the securities. .

Article 8   The tax payable of stamp duty is calculated by multiplying the tax basis by the applicable tax rate.

Article 9 If the same taxable voucher contains two or more tax items and the amounts are separately stated, the taxable amount shall be calculated according to the respective applicable tax items and tax rates; if the amounts are not separately stated, the higher is applicable tax rate.

Article 10   If the same taxable voucher is written by two or more parties, the taxable amount shall be calculated according to the respective amounts involved.

Article 11 In the business account book that has paid stamp duty, the total amount of paid-in capital (share capital) and capital reserve recorded in subsequent years is higher than the total amount of paid-in capital (share capital) and capital reserve that has been paid. If the amount increases, the tax payable shall be calculated according to the increased part.

Article 12 The following vouchers are exempt from stamp duty:

(1) A copy or copy of the taxable vouchers;

(2) It shall be granted in accordance with the law Tax-exempt foreign embassies, consulates and representative offices of international organizations in China are required to obtain taxable vouchers written by the premises;

(3) Chinese People’s Liberation Army and the Chinese People’s Armed Police Force have issued taxable vouchers;

(4) Farmers, family farms, Farmer professional cooperatives, rural collective economic organizations, Village committees purchase agricultural production materials or sell agricultural products in written sales contracts and agricultural insurance contracts;

(5) Interest-free or discount loan contracts, international financial organizations China provides loan contracts with preferential loans;

(6) Property rights transfer documents written by the property owner to the government, schools, social welfare institutions, and charitable organizations;

(7) Purchase and sale contracts established by non-profit medical and health institutions to purchase drugs or sanitary materials;

(8) Electronic orders entered into by individuals and e-commerce operators.

According to the needs of national economic and social development, the State Council may provide for reduction or exemption of stamp duty for housing demand guarantees, enterprise restructuring and reorganization, bankruptcy, and support for the development of small and micro enterprises, and report to the National People’s Congress Standing Committee for the record.

Article 13 If a taxpayer is a unit, it shall declare and pay stamp duty to the competent tax authority where its organization is located; if the taxpayer is an individual, it shall report to the competent tax authority where the taxable certificate is established or where the taxpayer resides. Declare and pay stamp duty.

In the event of a transfer of property rights of real property, the taxpayer shall declare and pay stamp duty to the competent tax authority in the place where the real property is located.

Article 14 If the taxpayer is an overseas entity or individual with an agent in China, the domestic agent shall be the withholding agent; if there is no agent in China, the taxpayer shall declare and pay stamp duty by himself. The specific measures shall be formulated by the competent taxation department of the State Council.

The securities registration and settlement institution is the withholding agent of the stamp tax on securities transactions and shall Declare the tax payment and bank-settled interest to the competent tax authority where the institution is located.

Article 15  The time when the tax liability for stamp duty occurs is the day when the taxpayer issues the taxable certificate or completes the securities transaction.

The time when the securities transaction stamp tax withholding obligation occurs is the day when the securities transaction is completed.

Article 16   The stamp duty shall be levied on a quarterly, annual or time basis. If the tax is calculated on a quarterly or annual basis, the taxpayer shall declare and pay the tax within 15 days from the end of the quarter and the year; if the tax is calculated on a quarterly basis, the taxpayer shall declare within 15 days from the date when the tax obligation arises. Paying Taxes.

The stamp duty on securities transactions is paid weekly. The securities transaction stamp tax withholding agent shall declare the tax payment and bank-settled interest within five days from the end of each week.

Article 17 Stamp tax can be pasted tax stamp or by the tax authority according to law Payment is made by issuing other tax payment vouchers.

If the tax stamp is pasted on the taxable voucher, the taxpayer shall write off or cancel the stamp at the seam of each tax stamp.

The tax stamps are produced under the supervision of the taxation authority of the State Council.

Article 18  Stamp tax shall be collected and managed by tax authorities in accordance with this Law and the”Tax Collection and Administration Law of the People’s Republic of China”.

Article 19 Taxpayers, withholding agents, tax authorities and their staff who violate the provisions of this law shall be investigated in accordance with the”Tax Collection Administration Law of the People’s Republic of China” and relevant laws and administrative regulations legal liability.

Article 20:This law shall come into force on July 1, 2022. The”Interim Regulations of the People’s Republic of China on Stamp Duty” promulgated by the State Council on August 6, 1988 shall be repealed at the same time.