Administrative Measures of the Guangdong Local Taxation Bureau for the Levy of Stamp Duty by Assessment

· Document Number：Announcement No. 4 [2017] of the Guangdong Local Taxation Bureau

· Area of Law： Taxation

· Level of Authority： Local Regulatory Documents

· Date issued：09-21-2017

· Effective Date：10-01-2017

· Status： Effective

· Issuing Authority： Guangdong Local Taxation Bureau

Administrative Measures of the Guangdong Local Taxation Bureau for the Levy of Stamp Duty by Assessment
(Announcement No. 4 [2017] of the Guangdong Local Taxation Bureau)
Administrative Measures of the Guangdong Local Taxation Bureau for the Levy of Stamp Duty by Assessment
Article 1 With a view to strengthening the collection and administration of stamp duty, standardizing the levy of stamp duty by assessment, and plugging loopholes in tax administration, these Measures are formulated pursuant to the Law of the People's Republic of China on Tax Collection and Administration and its detailed rules of implementation, the Interim Regulations of the People's Republic of China on Stamp Duty and its detailed rules of implementation, the Announcement of the State Administration of Taxation on Promulgating the "Procedures for Stamp Duty Administration (for Trial Implementation)" (Announcement 2016 No. 77 of the State Administration of Taxation) and other relevant provisions, as well as in light of the actual circumstances in Guangdong Province.
Article 2 A taxpayer shall truthfully provide and properly keep documents subject to stamp duty and other relevant tax payment materials, prepare a uniform Register of Documents subject to Stamp Duty according to the requirements of tax authorities, assign designated persons to be responsible for recording the conclusion and receipt of each taxable document, and calculate and pay stamp duty on an actual basis pursuant to pertinent provisions.
The safekeeping period of taxable documents shall be governed by the Law of the People's Republic of China on Tax Collection and Administration.
Article 3 Under any of the following circumstances, a competent tax authority may determine the stamp duty tax base of a taxpayer by assessment:
(1) Where the taxpayer fails to prepare the Register of Documents subject to Stamp Duty pursuant to pertinent provisions, or fails to truthfully register or keep all taxable documents;
(2) Where the taxpayer refuses to provide or fails to truthfully provide taxable documents, making the tax base artificially low; or
(3) Where the taxpayer fails to report information on the consolidated payment of stamp duty within the time period prescribed by the competent tax authority, and still fails to report such information after being ordered by the competent tax authority to do so by the prescribed deadline, or where the competent tax authority finds during inspection that the taxpayer has failed to pay stamp duty on a consolidated basis pursuant to pertinent provisions, applicable if the taxpayer adopts the method of consolidated payment according to specified deadlines.
Article 4 A tax authority shall determine the stamp duty tax base of a taxpayer according to the actual production and operating income of the taxpayer and by reference to the taxpayer's payment of stamp duty in different periods and its conclusion of contracts, and assess the levy of stamp duty on the taxpayer by filling out the Assessment Form for Other Taxes (Stamp Duty Assessment) (Appendix 1). Details in this regard are as follows:
(1) In the case of purchase and sale contracts of an industrial enterprise, 70% of its sales revenue shall serve as the tax base for the total stamp duty that shall be levied in the stage of purchase and sale;
(2) In the case of purchase and sale contracts of a commercial enterprise or an enterprise engaging in other industries, 50% of its sales revenue shall serve as the tax base for the total stamp duty that shall be levied in the stage of purchase and sale;
(3) In the case of purchase and sale contracts of a comprehensive foreign trade service enterprise, 30% of its sales revenue shall serve as the tax base for the total stamp duty that shall be levied in the stage of purchase and sale; and
(4) Assessed tax bases and taxable items applicable to other taxable documents as prescribed by tax authorities.
Article 5 The calculation formula for levying stamp duty by assessment on a purchase and sale contract is as follows: Stamp duty payable for a purchase and sale contract = sales revenue × rate of assessment × applicable tax rate.
The calculation formula for levying stamp duty by assessment on other taxable documents: assessed tax base as prescribed by tax authorities × applicable tax rate.
Article 6 The validity period of each exercise to levy stamp duty by assessment shall be on a yearly basis, and each assessment shall be valid for not longer than three years.
Article 7 A competent tax authority shall determine the list of taxpayers on whom stamp duty shall be levied by assessment by way of collective deliberation, properly prepare relevant meeting minutes, and submit deliberation results to the relevant tax authority at the next higher level for record-filing within ten working days.
Article 8 To levy stamp duty on a taxpayer by assessment, a competent tax authority shall serve on the taxpayer the Notice of Taxation Matters which shall specify the basis for levying stamp duty by assessment, the period during which stamp duty shall be levied by assessment and the period of tax payment, in which case the taxpayer shall file for tax returns and make tax payment as required.
The competent tax authority may make adjustments or cease to levy stamp duty by assessment if it finds that the taxpayer has experienced changes in circumstances during the period when stamp duty is levied by assessment or upon expiry of the said period, provided that the competent tax authority shall serve the Notice of Taxation Matters on the taxpayer.
Article 9 Where a taxpayer has any objection to the amount of tax payable assessed by the competent tax authority, or where re-assessment is necessary due to changes in the production and operations of a taxpayer, the taxpayer shall fill out the Application Form for Assessment of Other Taxes (Application for Stamp Duty Assessment) (Appendix 2) and submit relevant evidence, in which case the competent tax authority shall make adjustments or cease to levy stamp duty by assessment upon verification.Where it is confirmed upon review that adjustments shall be made to the levy of stamp duty on the taxpayer by assessment or that stamp duty shall no longer be levied on the taxpayer by assessment, the competent tax authority shall, within 15 working days upon acceptance of the application, prepare the Notice of Taxation Matters and serve the same on the taxpayer.
Article 10 Where stamp duty is levied by assessment, the tax payment period shall be one month, and may be one quarter if the amount of stamp duty payable is small. Specific circumstances in this regard shall be determined by competent tax authorities. A taxpayer shall, within 15 days from the expiry of the tax payment period, fill out the filing form for tax returns uniformly produced by the State Administration of Taxation to declare and pay the amount of stamp duty that is levied by assessment.
Article 11 A taxpayer on whom stamp duty is levied by assessment shall continue to calculate and pay stamp duty on an actual basis pursuant to pertinent provisions on taxable documents other than those that have been assessed by tax authorities.
Where the competent tax authority has not decided to levy stamp duty on a taxpayer by assessment after going through the procedures prescribed herein, the taxpayer shall not calculate and pay stamp duty by the method of levy by assessment on its own accord.
Article 12 Where a taxpayer has paid stamp duty on an actual basis on a certain type of assessed taxable document within the period of assessment, the tax already paid by the taxpayer (including the decals already pasted) may be treated as "amount of tax already paid in the current period" after review by the competent tax authority, and be used to deduct the amount of stamp duty payable on the same type of taxable document as filed by the taxpayer during the same period. The surplus, if any, remaining after such deduction may not be carried forward. Where the "amount of tax that shall be made good (or refunded) in the current period" is negative because the "amount of tax already paid in the current period" is larger than the "amount of tax payable in the current period" upon tax filing, the taxpayer may not apply for tax refund or tax credit with regard to the amount of tax paid in excess.
A taxpayer shall indicate in the remarks column of its filing form for tax returns the title of each taxable document for which tax has been paid (decals have been pasted), the monetary value thereof, the amount of stamp duty paid therefor, tax invoice number and other relevant information. The taxpayer shall retain the taxable documents for which stamp duty has been paid for future reference, and be legally liable for the truthfulness and legality of the taxable documents retained for future reference.
Article 13 A taxpayer shall be dealt with pursuant to the Law of the People's Republic of China on Tax Collection and Administration and its detailed rules of implementation if stamp duty is not paid or is underpaid due to the failure of the taxpayer to file for tax returns and pay stamp duty within the prescribed time period or the actions of the taxpayer to conceal the tax base for levying stamp duty by assessment.
Article 14 Competent tax authorities shall strengthen the tax assessment of stamp duty, promptly identify weak aspects of tax collection and taxpayers with dubious payment records, and carry out targeted verification accordingly. Local taxation bureaus at and above the level of prefectural cities shall enhance policy management and professional guidance with regard to the levy of stamp duty. The Guangdong Local Taxation Bureau shall, according to economic development dynamics, adjust the scope of taxable documents, the bases for assessment, and the quota or rate of assessment for levying stamp duty by assessment in due course.
Article 15 These Measures shall be interpreted by the Guangdong Local Taxation Bureau. Local taxation bureaus in all cities at and above the prefectural level may formulate detailed administrative provisions in accordance with these Measures.
Article 16 These Measures shall come into effect on October 1, 2017.
Appendices: 1. Assessment Form for Other Taxes (Stamp Duty Assessment)
2. Application Form for Assessment of Other Taxes (Application for Stamp Duty Assessment)