Jul 2022 - Stamp Duty Law of the People's Republic of China will take effect on 1 July 2022
We summarize hereafter the main measures that may impact your operations.
Taxpayers
- Entities and individuals who produce taxable documents in China
- Overseas entities and individuals who produce taxable documents to be used in China
- Entities and individuals who conduct securities transactions in China
- Stamp Duty on securities transactions is levied on the transferor instead of the transferee
Taxable documents include:
- Contracts
- Property transfer documents
- Business account books
Tax base
The tax base varies depending on the documents liable to Stamp Duty:
Taxable documents | Tax base |
Contracts | Amount stated, excluding VAT |
Property transfer documents | Amount stated, excluding VAT |
Business account books | Total amount of paid-in capital & capital reserves |
Securities transaction | Transaction amount |
Tax Rate
Taxable documents | Tax rate | |
Contracts | Loan contract | 0.005% |
Financial lease contract | ||
Purchase / sales contract | 0.03% | |
Processing contract | ||
Construction project contract | ||
Transportation contract | ||
Technical contract | ||
Leasing contract | 0.1% | |
Safekeeping contract | ||
Warehousing contract | ||
Property insurance contract | ||
Property transfer documents | Land-use right | 0.05% |
Ownership of land-use right, houses and other buildings and structures | ||
Equity transfer | ||
Trademark, copyright, patent right and proprietary technology use right | 0.03% | |
Business account books | 0.025% | |
Securities transaction | 0.1% | |
Calculation method
Tax payable = tax base × applicable tax rate
Points of attention
- The following items are not subjected to Stamp Duty:
- Certificates and licenses
- VAT, if separately presented in the contract
If the contract amount includes VAT, and VAT is not listed separately in the contract, Stamp Duty shall be calculated on the full amount.
- Stamp Duty rate is reduced from 0.05% to 0.03% on the following items:
- Processing contract
- Construction project contract
- Transportation contracts
- Property transfer documents for trademark right, copyright, patent right and proprietary technology use right
Please do not hesitate to reach out to your Mazars point of contact should you have questions.
References:
Standing Committee of the National People's Congress, Presidential Decree No. 89: Stamp Duty Law of the People's Republic of China (link here in Chinese).
