Interim Regulations of the People's Republic of China on Stamp Tax (Revised in 2011)

Order of the State Council of the People's Republic of China No.588

January 8, 2011

(Promulgated by Order of the State Council of the People's Republic of China No.11 on August 6, 1988 and revised in accordance with the Decision of the State Council on Repealing and Revising Certain Administrative Regulations issued on January 8, 2011)

Article 1 All entities and individuals who execute or receive vouchers specified in these Interim Regulations of the People's Republic of China on Stamp Tax (Revised in 2011) (hereinafter referred to as the "Regulations") within the territory of the People's Republic of China are taxpayers of stamp tax (hereinafter referred to as the "taxpayers"), and shall pay stamp duty in accordance with these Regulations.


Article 2 The following vouchers are taxable vouchers:
1. contracts or vouchers of the nature of a contract with regard to purchases and sales, processing, contracting of construction projects, property leasing, cargo transportation, warehousing storage, loans, property insurance, or technology;
2. documents for transfer of property rights;
3. business account books;
4. certificates for rights or licenses; and
5. other vouchers that are taxable as determined by the Ministry of Finance.

Article 3 Taxpayers shall calculate the amount of tax payable on the basis of a flat tax rate or a fixed amount per voucher according to the nature of a taxable voucher. The specific tax rate or tax amount shall be determined in accordance with the Schedule of Stamp Tax Items and Rates attached hereto.
No stamp tax shall be paid where the amount of tax payable is less than one jiao.
Where the amount of tax payable is one jiao or more, if the mantissa is less than five fen, it shall not be counted; and if the mantissa is five fen or more, the tax shall be calculated as one jiao.

Article 4 The following vouchers are exempted from stamp tax:
1. duplicates or copies of vouchers on which stamp tax has already been paid;
2. documents executed for the donation of property to the government, social welfare establishments or schools by property owners; and
3. other vouchers which are exempted from stamp tax upon approval of the Ministry of Finance.

Article 5 In implementing measures for the payment of stamp tax, taxpayers shall, in accordance with the provisions, calculate the amount of tax payable and purchase and affix at one stroke the full corresponding revenue stamps (hereinafter referred to as "stamping").
In order to simplify the stamping procedures, where the amount of tax payable is relatively large or where stamping is frequent, taxpayers may apply to tax authorities for replacing stamping with a tax payment statement, or making consolidated payments on schedule.

Article 6 Revenue stamps shall be affixed to taxable vouchers and shall be canceled by taxpayers along each stamp's border with a seal or a drawn line.
Revenue stamps that have already been affixed may not be reused.

Article 7 Revenue stamps shall be affixed to taxable vouchers upon execution or receipt.

Article 8 Where the same voucher is executed by two or more parties and each party holds a copy, each party shall be responsible for affixing on its own copy the full amount of revenue stamps.

Article 9 Where a voucher affixed with revenue stamps is amended, resulting in an increase in the value thereof, additional revenue stamps shall be affixed on the voucher according to the amount of such increase.

Article 10 Tax authorities are responsible for the collection and administration of stamp tax.

Article 11 Revenue stamps shall be made under the supervision of the State Administration of Taxation. The face value of revenue stamps shall be denominated in Renminbi.

Article 12 Entities issuing or processing taxable vouchers are responsible for the supervision of taxpayers in respect of the payment of stamp tax in accordance with the law.

Article 13 Where taxpayers are found to have engaged in any of the following behaviors, tax authorities shall impose penalties in light of the circumstance of the case:
1. in the case of a failure to affix revenue stamps or the affixing of an insufficient amount of revenue stamps on taxable vouchers, tax authorities may, in addition to ordering taxpayers to make up for the revenue stamps, impose a fine equal to 20 times or less the amount of revenue stamps due;
2. in the case of a violation of Paragraph 1 of Article 6 of these Regulations, tax authorities may impose a fine equal to ten times or less the amount of revenue stamps that have not been canceled by a seal or a drawn line; and
3. in the case of a violation of Paragraph 2 of Article 6 of these Regulations, tax authorities may impose a fine equal to 30 times or less the amount of revenue stamps that have been reused.
Where revenue stamps have been forged, tax authorities shall submit the matter to judicial authorities for investigation of criminal liability in accordance with the law.

Article 14 The collection and administration of stamp tax other than that as stipulated herein shall be implemented in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Levying.

Article 15 These Regulations shall be construed by the Ministry of Finance; the implementing rules thereof shall be formulated by the Ministry of Finance.

Article 16 These Regulations shall come into force as of October 1, 1988.

Appendix: Schedule of Stamp Tax Items and Rates (Omitted)