Stamp Tax Law of the People's Republic of China

Stamp Tax Law of the People's Republic of China

(No. 89)

The Stamp Tax Law of the People's Republic of China, as adopted at the 29th Session of the Standing Committee of the Thirteenth National People's Congress of the People's Republic of China on June 10, 2021, is hereby issued, and shall come into force on July 1, 2022.

Xi Jinping, President of the People's Republic of China
June 10, 2021

Stamp Tax Law of the People's Republic of China
(Adopted at the 29th Session of the Standing Committee of the Thirteenth National People's Congress on June 10, 2021)

Article 1 The entities and individuals that conclude taxable vouchers or conduct securities trading within the territory of the People's Republic of China are taxpayers of stamp tax, and shall pay stamp tax in accordance with this Law.
The entities and individuals that conclude outside the territory of the People's Republic of China the taxable vouchers that are used inside China shall pay stamp tax in accordance with this Law.
Article 2 For the purpose of this Law, “taxable vouchers” means contracts, documents of transfer of property rights, and business account books listed in the Table of Taxable Items and Tax Rates for Stamp Tax attached to this Law.
Article 3 For the purpose of this Law, “securities trading” means the transfer of stocks and depositary receipts issued based on stocks that are traded on stock exchanges legally formed and other national securities trading venues approved by the State Council.
Securities trading stamp tax shall be imposed on the transferor rather than the transferee of a securities transaction.
Article 4 The taxable items and tax rates for stamp tax shall be governed by the Table of Taxable Items and Tax Rates for Stamp Tax attached to this Law.
Article 5 The tax bases for stamp tax shall be as follows:
(1) The tax base for a taxable contract shall be the value amount listed in the contract, excluding the specified value-added tax (“VAT”).
(2) The tax base for a taxable document of transfer of any property right shall be the value amount listed in the document of transfer of the property right, excluding the specified VAT.
(3) The tax base for a taxable business account book shall be total amount of the paid-up capital (capital stock) and capital reserve recorded in the account book.
(4) The tax base for a securities transaction shall be the transaction value.
Article 6 Where a taxable contract or a document of transfer of any property right does not specify the value amount, the tax base for stamp tax shall be determined based on the value amount actually settled.
If the tax base still cannot be determined according to the preceding paragraph, it shall be determined based on the market price at the time of conclusion of the contract or the document of transfer of the property right; and where the price set by the government or under governmental guidance shall be implemented according to law, the tax base shall be determined according to the relevant provisions issued by the state.
Article 7 In the absence of transfer price in a securities transaction, the tax base shall be calculated and determined based on the closing price of the securities on the trading day before the transfer registration formalities are undergone; and in the absence of closing price, the tax base shall be calculated and determined based on the face value of the securities.
Article 8 The amount of stamp tax payable shall be calculated by multiplying the tax base by the applicable tax rate.
Article 9 Where the same taxable voucher specifies two or more taxable items and respectively list the amounts, the amounts of taxes payable shall be calculated based on their respective applicable taxable items and tax rates; and where the amounts are not specified separately, the rate which is higher shall apply.
Article 10 If the same taxable voucher is concluded by two or more parties, the amounts of taxes payable shall be calculated separately based on the value amounts involved by such parties respectively.
Article 11 Where the total amount of paid-up capital (......