What is stamp duty?
- Release Date：2025-11-04 08:00:46
- Reading volume： 0
01The definition of stamp duty and its tax law basis
Stamp duty is a tax levied on taxable documents established, received or used in economic activities and economic transactions. It is that taxpayers purchase and affix stamp duty tickets (referred to as "affixing stamps") on their own in accordance with the prescribed taxable proportion and quota, thus fulfilling their tax obligations.
The main tax law basis for stamp duty is the "Stamp Duty Law of the People's Republic of China" (hereinafter referred to as the "Stamp Duty Law"), which came into effect on July 1, 2022. The original "Provisional Regulations of the People's Republic of China on Stamp Duty" was simultaneously abolished. The promulgation and implementation of the Stamp Duty Law marks that the collection and management of stamp duty has officially been elevated to the legal level, making the tax system more standardized and transparent.
02The scope of collection, taxpayers and applicable tax rates of stamp duty
The scope of stamp duty collection includes taxable documents established within the territory of the People's Republic of China. The specific scope of taxation is as follows
1."Contract category"
Including loan contracts, financial lease contracts, sales contracts, work contracts, construction project contracts, transportation contracts, technology contracts, lease contracts, storage contracts, warehousing contracts, property insurance contracts, etc.
2.Document of property rights transfer
This includes documents for the grant and transfer of land use rights, documents for the transfer of ownership of buildings and structures such as houses (excluding the transfer of land contract management rights and land management rights), documents for the transfer of equity (excluding those subject to securities transaction stamp duty), and documents for the transfer of exclusive rights to trademarks, Copyrights, patent rights, and the right to use proprietary technology.
3.Business account books
Refers to the account books that record paid-in capital (share capital) and capital reserve.
4.Securities trading
It refers to the transfer of stocks and depositary receipts based on stocks traded on a legally established stock exchange or other national securities trading venues approved by The State Council.
5.Taxpayer
Units and individuals who establish taxable documents or conduct securities transactions within the territory of the People's Republic of China are taxpayers of stamp duty.
6.Applicable tax rate
Flower taxes are levied respectively on a AD valorem basis and on a specific basis according to different taxable items.
7.AD valorem levy
The tax payable shall be calculated based on the amount, expenses, income, etc. listed in the taxable documents at the applicable tax rate.
8.Levy based on quantity
The tax payable is calculated based on the number of taxable documents and the applicable tax rate. At present, stamp duty on business account books (other account books) and rights and licenses has been abolished. Therefore, the levy based on quantity mainly exists on some specific documents (such as securities transactions).
03Tax reduction and exemption benefits
According to the Stamp Duty Law and relevant national policies, the following circumstances are eligible for stamp duty reduction or exemption benefits:
-Copies or duplicates of taxable documents are exempt from tax.
-The sales contracts and agricultural insurance contracts concluded by farmers, family farms, farmers' professional cooperatives, rural collective economic organizations and villagers' committees when purchasing agricultural production materials or selling self-produced agricultural products are exempt from tax.
-The sales contracts and agricultural insurance contracts concluded by farmers, family farms, farmers' professional cooperatives, rural collective economic organizations and villagers' committees when purchasing agricultural production materials or selling self-produced agricultural products are exempt from tax.
-Property rights transfer documents established by property owners when they donate their property to the government, schools, social welfare institutions or charitable organizations are tax-exempt.
-Taxable documents established for the establishment, relocation, alteration, revocation of the military and the armed police force, as well as the transfer of military assets, are exempt from tax.
-Electronic orders concluded between individuals and e-commerce operators are exempt from stamp duty (as per the Announcement No. 10 of 2023 by the Ministry of Finance and the State Taxation Administration).
-Stamp duty is temporarily exempted for individuals selling or purchasing housing.
-Other circumstances where stamp duty may be exempted or reduced as prescribed by The State Council.
Taxpayers enjoying the preferential policies on stamp duty shall follow the handling method of "self-judgment, declaration and enjoyment, and retention of relevant materials for future reference".
04The main rates of stamp duty
The rate of stamp duty varies depending on the type of taxable document. The following is the tax rate table for several major taxable documents:
05The proportion of stamp duty in all taxes in China and its significant position in China's fiscal revenue
Although the individual amount of stamp duty is usually not large, due to its wide coverage and frequent involvement in economic activities, it is an important component of China's tax revenue. In recent years, with the rapid development of China's capital market and the increasingly active economic activities, the revenue from stamp duty has shown a steady growth trend.
From the perspective of tax structure, stamp duty revenue (especially the stamp duty on securities transactions) is highly volatile and closely related to the prosperity of the capital market. In years when stock market trading is active, the revenue from stamp duty on securities transactions will increase significantly. According to the annual fiscal revenue and expenditure situation released by the Ministry of Finance, stamp duty revenue accounts for a certain proportion of the total national tax revenue. Although it is not a major tax type (such as value-added tax, enterprise income tax, and individual income tax), its revenue scale cannot be ignored. It plays an important role in ensuring national fiscal revenue and regulating economic operation (especially the capital market).
Taking the data of recent years as an example, stamp duty revenue has continuously contributed a stable source of funds to the central and local finances. Meanwhile, adjustments to stamp duty policies (such as tax rates, collection scope, etc.) are also often used as tools for macro-control to achieve specific economic policy goals.
06As it is a major tax type, the state's collection policy is very strict. It is necessary to develop a tax awareness of respecting tax laws and paying taxes in accordance with the law
Stamp duty, as a tax type clearly stipulated in the Stamp Tax Law, has the characteristics of compulsion, fixity and gratuitousness in its collection and management. The state's collection and management of stamp duty have become increasingly standardized and strict, mainly manifested in:
1.The legal basis is clear: The implementation of the Stamp Duty Law has provided a higher-level legal guarantee for the collection of stamp duty, making the rights and obligations of both the tax authorities and taxpayers clearer.
2.Modernization of tax collection and administration methods: With the advancement of tax big data systems such as the Fourth Phase of the Golden Tax Project, the tax authorities' ability to monitor taxpayers' taxable behaviors has been continuously enhanced. For the failure to declare and pay stamp duty as required, it is easier to identify and investigate.
3.The legal responsibilities are clear: If taxpayers fail to pay stamp duty as prescribed, the tax authorities will lawfully recover the tax, impose late payment surcharges and impose fines. If a crime is constituted, criminal responsibility shall be pursued in accordance with the law.
Therefore, as market entities, whether enterprises or individuals, they must firmly establish the awareness of paying taxes in accordance with the law and fully recognize that paying stamp duty in accordance with the law is a legal obligation that should be fulfilled. Specifically, it should be achieved
-Take the initiative to study tax law
Keep abreast of the "Stamp Duty Law" and related policy regulations in a timely manner, accurately grasp the types of taxable documents involved, the tax basis, the applicable tax rate and the time when the tax liability arises.
-Accurate calculation and declaration
In accordance with tax laws, accurately calculate the tax payable and file tax returns on time through the electronic tax bureau or tax service hall. For those who meet the preferential conditions, they should apply for and enjoy the benefits in accordance with the regulations.
-Take the initiative to study tax law
Properly keep the contracts, agreements, documents and other materials related to taxable documents for inspection by the tax authorities.
-Prevent tax risks
Avoid underpayment or omission of taxes due to misunderstanding or negligence of policies, which may lead to tax risks and affect the credit of enterprises and personal credibility.
Paying taxes in accordance with the law and in good faith is not only a legal requirement but also a manifestation of a company's social responsibility and business reputation. Guangzhou Exclusive Easy Finance and Taxation Company reminds you: Respect tax laws and pay taxes in accordance with the law to achieve steady and long-term development.