Stamp Duty is a tax levied on the documents written, received in the economic activities. The primary laws, regulations in respect of stamp duty are Provisional Rules of the People’s Republic of China on Stamp Duty (the “PRSD” and Provisional Rules on Stamp Duty Implementing Rules (the “PRSDIR”).
Taxpayers of Stamp Duty
The taxpayers of stamp duty include any enterprise, unit, individual household business operators and other individual who executes or receives specified economic documents within the territory of China.
Taxable Items and Relevant Rates
There are thirteen taxable items and relevant rates applied respectively regulated in the Appendix of the “PRSD” as follows:
1. Purchase and sale contracts, including contracts of supply, repurchase, purchase for an organization or enterprise, purchase and sale combinations and co-operation, adjustment, compensation, barter etc. (stamp duty of 0.03% of the purchase of sale price)
2. Process contracting contracts, including processing, specific orders, renovations, repairs, printing, advertising, mapping and testing (stamp duty of 0.05% of the income from processing or other contracting work).
3. Engineering project reconnaissance and design contracts, including prospecting contracts and design contacts (stamp duty of 0.05% of fees received.)
4. Construction and installation project contracts, including construction contracts and installation contracts (stamp duty of 0.03% of the contract amount).
5. Property leasing contracts, including contracts for the leasing of housing, vessels, aircraft, motorized vehicles, machinery, tools and equipment (stamp duty of 0.1% of the leasing fee although stamp duty of 1 yuan shall be paid if the payable amount is less than 1 yuan.)
6. Commodity transportation contracts, including contracts for the transport of goods by civil aircraft, rail, ship, river and road and coordinated transport contracts (stamp duty of 0.05% of the transport costs).
7. Storage and custody contracts, including storage contracts and custody contracts (stamp duty of 0.01% of the storage or custody service fee).
8. Loan contracts signed between banks or other financial institutions and borrowers (not including inter-bank short-term loans on which interest is calculated daily) – (stamp duty of 0.005% of the amount borrowed).
9. Property insurance contracts, including property, liability, guarantee and credit insurance contracts (stamp duty of 0.003% of the insured amount).
10. Technology contracts, including technology development, transfer, consultancy and service contracts (stamp duty of 0.03% of the stated value.)
11. Documents of transfer of property rights, including documents of transfer of property titles, copyright, exclusive right of use of trademarks, patents and proprietary technology usage rights (stamp duty of 0.05% of the stated value).
12. Business books of account, namely books of account for production and business operations and account books for the recording of funds (stamp duty of 0.05% of the total amount of the original value of fixed assets and the enterprise’s own working capital funds).
13. Documentation of rights and licenses, including certificates of housing property rights, industrial and commercial business licenses, trademark registration certificates, patent certificates and land use certificates – (stamp duty of 5 yuan per document).