China Stamp Duty Calculation and Exemptions

Calculations of China Stamp Duty

Stamp duty is based on the nature of the taxable documents, either the amount of payment, fees or revenue listed on the taxable documents or the number of pieces of the taxable documents and computed by using the statutory applicable tax rate or amount of tax per unit.

The formula for calculating the amount of tax payable is:

Tax payable = amount of payment (or fees or revenue) indicated in taxable documents applicable rate
Tax payable = number of pieces of taxable documents amount of tax per unit

Where the payment indicated in the taxable documents is in foreign currency, it should be converted into Renminbi according to the exchange rate quoted by the people’s bank of China on the date of signing the documents, and then the amount of tax payable is computed on that Renminbi basis.

List of Documents Exempted from Stamp Duty

The following documents may be exempt from stamp duty:

1. Duplicates or copies of documents on which stamp duty has already been paid, excluding those used as original ones.
2. Documents executed when property is donated to the government, social welfare unit supporting the widowed, the aged, the injured and the handicapped, or schools.
3. Agricultural by-product purchase contracts concluded between state designated purchase departments and village committees or individual peasants.
4. Non-interest bearing or discounting loans contracts.
5. Preferential loans contracts concluded between foreign governments or international financial institutions and the Chinese government or state financial institutions.
6. Insurance contracts for agriculture and forestry produce, and animals in animal husbandry.
7. Documents concluded between book, newspaper and/or magazine publishing units, between publishing units and the subscribing units or individuals.