OVERVIEW OF CHINA'S CURRENT TAX SYSTEM
Stamp Tax
(1) Taxpayers
The taxpayers of Stamp Tax include any enterprise, unit, individual
household business operators and other individual who executes
or receives specified economic documents within the territory
of China.
(2) Taxable items and tax rates
Table of Stamp Tax Taxable Items and Rates
| Taxable items |
Tax rates (tax amount) |
| 1. purchase / sale contracts
|
0.03% |
| 2. processing contracts |
0.05% |
| 3. survey arid design contracts
for engineering and construction projects |
0.05% |
| 4. construction installation
and engineering contracts |
0.03% |
| 5. property, leasing contracts
|
0.1% |
| 6. goods transportation contracts
|
0.05% |
| 7. warehousing contracts |
0.1% |
| 8. loans contracts |
0.005% |
| 9. property insurance contracts
|
0.1% |
| 10. technology contracts |
0.03% |
| 11. property title transfer documents
|
0.05% |
| 12. business accounting documents
(1) capital recording documents
(2) other accounting documents |
0.05% 5 yuan/piece |
| 13. permits and licenses |
5 yuan/piece |
| 14. stock exchange |
0.4% |
(3) Computation
The computation of Stamp Tax is based on the amount of payment,
fees or receipts listed on the taxable documents or the number
of pieces of the taxable documents by using the applicable tax
rate listed in the Schedule of Stamp Tax Taxable Items and by
applying the applicable tax rate or amount of tax per unit.
The formula for computation is:
a. Tax payable =Amount of payment ( or fees, receipt) indicated
in taxable documents × Applicable rate , or
b. Tax payable = Number of pieces of taxable documents ×Tax
amount per Unit
(4) Major exemptions
Tax exemptions may be granted on duplicates or copies of documents
on which Stamp Tax has already been paid; documents executed
when property is donated to the government, social welfare units
supporting the widowed, the aged, the injured and the handicapped,
or schools; non-interest bearing or discounting loan contracts;
preferential loan contracts concluded between foreign governments
or international financial institutions and the Chinese government
or State financial institutions; and insurance contracts for
agriculture and forestry products, and animals in animal husbandry. |
