Page 37 - Doing Business in China

TAXATION

STAMP DUTY
Stamp duty, ranging from 0�005% (for loan agreements) to 0�1% (for leasing agreements, property insurance
contracts, warehousing and storage contracts), applies to prescribed contracts, written certificates of transfer of
property rights, business account books and permits� The rate on share transactions is 0�1% for shares listed on a
domestic stock exchange�

On 1 July 2022, the Stamp Duty Tax Law of PRC was implemented�

Item Scope Tax Rate
Purchase and sales contracts Contracts of supply, pre-purchase, 0�03% of the purchase or sales price
procurement, purchase for an
organisation or enterprise, purchase
and sale combinations and cooperation,
adjustment, compensation, barter etc�
Construction and installation project Construction contracts and installation 0�03% of the contract amount
contracts contracts�
Property leasing contracts Contracts for the leasing of housing, 0�1% of the leasing fee
vessels, aircraft, motorised vehicles,
machinery, tools and equipment�
Commodity transportation contracts Contracts for the transport of goods by 0�05% of the transport cost
civil aircraft, rail, ship, river and road and
coordinated transport contracts�
Storage and custody contracts Storage contracts and custody 0�1% of the storage or custody fee
contracts�

Loan contracts signed between Not including interbank short-term 0�005% of the amount borrowed
banks or other financial institutions loans on which interest is calculated
borrowers daily� Receipts shall be used as a
contract and stamp duty shall be paid
as for a contract�
Property insurance contracts Property, liability, guarantee, and credit 0�1% of the insurance premium
insurance contracts� Receipts shall act
as a contract for which stamp duty
must be paid�

Technology contracts Technology development, transfer, 0�03% of the stated value
consultancy and service contracts�
Documents of transfer of property Documents of transfer of property 0�05% of the stated value
rights titles, copyright, exclusive right of use
of trademarks, patents and proprietary
technology usage rights�

Business books of account Books of account for recording capital 0�025%
and capital surplus�

FARMLAND CONVERSION TAX
Farmland conversion tax is imposed on taxpayers that occupy cultivated land to build houses or engage in other
non-agricultural construction� The farmland conversion tax is levied according to the area of the cultivated land
occupied by the taxpayers� The tax rates range from RMB 5 to RMB 50 per square meter� Taxpayers are obligated
to pay the farmland conversion tax within 30 days after the land administration department approves the land
occupation�

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