Chinese walker

Legal authority
The PRC Stamp Tax Tentative Regulation, promulgated by the State Council on 6th August 1988 and effective from 1st October 1988.

Scope of Stamp Tax
Stamp tax or stamp duty is payable on instruments created in the course of economic activities or on the licensee and certificates granted by the administrative authority.

Stamp tax are payable on the following types of contracts or licenses:-
Contracts or agreements;

Instrument for transfer of property;

Business accounting record;

Licenses and certificates,

Other instruments as specified by the Ministry of Finance.

Exemption from stamp tax: -
Duplicate contracts and agreements;

Donation of property to government, homes for the elderly or for the disabled, or schools;

Agricultural produce purchased by designated State organizations from villagers’ committees;

Interest-free loan agreements;

Loans advanced to Chinese government or financial institutions by foreign countries or international finance corporation at concessionary interest rates;

Insurance contracts for agricultural products and animal farming;

Transfer of books and magazines between publication distributors; Buying and selling of stock at approved Chinese stock exchange.

Payment of stamp tax
An agent has the legal obligation to pay stamp tax for its principle. If there are more than two parties to a contract, all parties shall pay stamp tax. For any stamp tax over RMB500, the taxpayer may apply to the tax authority to pay stamp tax by payment certificates, or pay the tax within a future period not exceeding one month.

Taxable items and tax rates

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