Provisional Regulations of
the People's Republic of China on Stamp Tax
Article 1 All units and individuals who execute or receive
documents which are in the categories specified in these
regulations and within the borders of the People's Republic
of China are taxpayers liable to Stamp Tax (hereinafter
referred to simply as "taxpayers") and shall pay Stamp Tax
according to the provisions of these regulations.
Article 2 The following categories of documents shall be
regarded as taxable documents:
A. Purchases and sales, undertaking of processing, undertaking
of construction projects, property leasing, commodity transport,
warehousing, loans, property insurance, technology contracts
and documents of a contractual nature;
B. documents used to transfer property rights;
C. business account books;
D. certificates which give rights or licenses;
E. and other documents which the Ministry of Finance determines
to be taxable.
Article 3 A taxpayer shall calculate the amount of tax
due on the basis of a flat tax rate or a fixed amount per
document, according to the nature of the taxable document.
The specific tax rate or the amount of tax shall be determined
with reference to the Table of Stamp Taxable Items and Tax
Rates accompanying these Regulations. Where the amount of
tax payable is less than one jiao, the tax is exempt.
Where the amount of tax payable is one jiao or more, an
odd-amount not exceeding five fen shall not be included;
where the odd amount is five fen or more, the tax shall
be calculated to the nearest jiao.
Article 4 The following documents are exempt from Stamp
Tax:
A. copies or transcripts of documents on which Stamp Tax
has already been paid;
B. documents executed when property owners donate property
to the Government, social welfare units or schools;
C. other documents approved by the Ministry of Finance
for exemption from Stamp Tax.
Article 5 To carry out the payment of Stamp Tax the taxpayer
shall, following regulations, calculate the amount of tax
due and purchase and affix, at one time, a corresponding
value of Tax Stamps (hereinafter referred to simply as 'stamping')In
order to simplify the stamping procedures when the amount
of tax is relatively large or where frequent stamping is
necessary, taxpayers may apply to the taxation authorities
to use a tax payment account or a periodic payment method
instead of stamping.
Article 6 Tax stamps shall be affixed to taxable documents;
taxpayers shall cancel each stamp along its border with
a seal or drawn line.
Tax stamps that have already been affixed may not be reused.
Article 7 Tax stamps shall be affixed to taxable documents
at the time the document is executed or when it is received.
Article 8 Where the same document is signed by two or more
parties and each party has one copy, each party shall be
responsible for affixing the full amount of Tax Stamps due
on its own copy.
Article 9 Where a document on which tax stamps have already
been affixed is amended, and results in an increase in its
value, an additional amount of tax stamps corresponding
to the increase in value shall be affixed to the document.
Article 10 The taxation authorities shall be responsible
for administering the collection of Stamp Tax.
Article 11 The State Administration of Taxation shall supervise
the printing of tax stamps. The face value of tax stamps
shall be denominated in Renminbi.
Article 12 Units issuing or handling taxable documents
shall be responsible for supervising the payment of Stamp
Tax by taxpayers, according to law.
Article 13 Where a taxpayer has engaged in any of the following,
the taxation authorities shall impose penalties according
to the seriousness of the case:
A. Where tax stamps were not affixed to a taxable document
or insufficient tax stamps were affixed, the taxation authorities
may impose a maximum fine of twenty times the amount of
tax payable in addition to ordering the taxpayer to affix
the correct amount of tax stamps.
B. Where there is a violation of Paragraph 1 of Article
6 of the Regulations, the taxation authorities may impose
a maximum fine of ten times the amount of tax stamps that
were not canceled by a seal or drawn line.
C. Where there is a violation of Paragraph 2 of Article
6 of the Regulations, the taxation authorities may impose
a maximum fine of thirty times the amount of tax stamps
that have been reused.
Where tax stamps have been forged, the taxation authorities
shall submit the matter to the judicial authorities for
criminal investigation according to the law.
Article 14 The management of the Stamp Tax levy, apart
from that stipulated in these Regulations, shall be implemented
according to relevant regulations in " Provisional Regulations
of the People's Republic of China on the Administration
of Taxation".
Article 15 These interpretation of these Regulations is
the responsibility of the Ministry of Finance; the Detailed
Rules for their implementation are determined by the Ministry
of Finance.
Article 16 These Regulations take effect as from October
1, 1988.
Table of Stamp Taxable Items and Tax Rates
Items subject to tax |
Scope |
Tax rates |
Persons liable
to tax |
Explanation |
1. Purchase
and sales contracts |
Including those
for supply, advance sales, purchases, linked purchases
and sales and contracts of agreement, adjustment,
compensation, trade, etc. |
Shall pay Stamp
Tax of three ten-thousandths of the value of the
sale or purchase amount |
Issuer of the
contract |
|
2. Contract
for undertaking processing work |
Including contracts
for processing, customs work, renovation repairs,
printing, advertising, surveying, testing, etc. |
hall pay Stamp
Tax of five ten-thousandths of the value of the
income from processing work |
Issuer of the
contract |
|
3. Construction
project feasibility study contracts |
Including testing
and planning contracts |
Shall pay tax
of five ten thousandths of fees received |
Issuer of the
contract |
|
4.Building and
fitting project undertaking contracts |
Including building,
fitting, engineering undertaking contracts |
Shall pay tax
of three ten thousandths of the contracted amount |
Issuer of the
contract |
|
5.Leasing contracts |
Including contracts
for the leasing of buildings, vessels, aeroplanes,
motorized vehicles, machines, apparatuses, equipment,
etc. |
Shall pay tax
of one thousandth of the rental amount. If
the tax liability is less than one yuan, stamp tax
will paid on one yuan. |
Issuer of the
contract |
|
6.Cargo transport
contracts |
Including contracts
for civil air transport, rail transport, sea transport,
inland river transport, highway transport and integrated
transport |
Shall pay tax
of five ten thousandths of the transport fees |
Issuer of the
contract |
Shall pay tax
according to the vouchers which are applicable to
the contract |
7. Storage and
safeguarding contracts |
Including storage
and safeguarding contracts |
Shall pay tax
of one thousandth of the storage and safeguarding
fees |
Issuer of the
contract |
Tax shall be
paid according to the storage receipts applicable
to the contract |
8. Loan contracts |
All loan contracts
signed by banks, other financial organizations and
lending and independent lenders (not including inter-bank
lending) |
Shall pay tax
of 0.5 of one thousandth of the loan amount |
Issuer of the
contract |
Tax shall be
paid according to documentary evidence applicable
to the contract |
9.Property insurance
contracts |
Including insurance
contracts for property, liability, guarantees, credit,
etc. |
Shall pay tax
of one thousandth of the insurance fee received |
Issuer of the
contract |
Tax shall be
paid according to documentary evidence applicable
to the contract |
10. Technology
contracts |
Including contracts
for technological development, transfer, consulting,
service, etc. |
Shall pay tax
of three ten thousandths of listed value |
Issuer of the
contract |
|
11. Property
transfer documents |
Including transfer
documentation for property ownership, copyright,
business trademarks, special usage rights, patents,
special technology usage rights, etc. |
Shall pay tax
of five ten thousandths of the listed value |
Issuer of the
contract |
|
12. Business
account books |
Account books
used in production and operation |
Account books
which record monetary values shall pay tax of five
ten thousandths of the sum of actual costs and capital
reserves. Other account books shall pay tax of five
yuan per book |
Issuer of account
books |
|
13. Permits
for rights and licenses |
Including Government
department issued documents for building construction,
industrial and commercial business, trademark registration
certificates, license certificates and land usage
certificates |
Shall pay tax
of five yuan per document |
Receiver of document |
|