CHINA | Get Ready for Stamp Duty Reforms

On 28 June, the State Taxation Administration issued Implementation of the Stamp Duty Law of the People’s Republic of China and other Related Matters – Notice No. 14 (‘Notice 14’).

Effective from 1 July 2022, Notice 14 replaces the Interim Regulations of the People’s Republic of China and regulates the stamp duty reforms within the specific contracts, agreement and documents executed and utilised within the territory of China.

Below, we highlight the main changes affecting companies in China.

Extended scope

The Notice 14 includes entities and individuals generating taxable documents outside of the territory of China and used within China as stamp taxpayers. For tax declaration and payment, a withholding agent shall withhold, declare and pay the taxable amount to the authorities.

Stamp duty rates

Category Taxable documentTax rate
ContractsLoan contract0.005%
of the loan/ lease amount
Financial lease contract0.005%
of the loan/lease amount
Purchases and sales contract0.03% of the value purchases
Work contract0.03% of the contracted amount
Construction project contract0.03% of the contracted amount
Transportation contract0.03% of the transportation fee
Technology contract0.03% of the price, remuneration, or royalty
Leasing contract0.01% of the insurance expenses
Safekeeping contract0.01% of the safekeeping fees
Warehouse contract0.01% of the warehousing fees
Property insurance contract0.01% of the insurance expenses
Property transfer documentsLand usage right granting document0.05% of indicated amount
Land usage right, ownership of buildings and structures0.05% of indicated amount
Equity transfer document0.03% of indicated amount
Exclusive right to use trademark, copyright, patent, know- how0.03% of indicated amount
Business accounting contracts0.025% of the total amount of the paid capital and the capital reserve fund
Security transactions0.1% of the volume of transactions


When calculating stamp duty, the following should be noted:

  • The basis tax calculation shall exclude the taxable VAT amount in contract or property transfer documents. Although, the VAT amount shall be specified in the taxable documents, otherwise the total amount shall be subject to stamp duty.
  • Equally, where the taxable document contains two or more tax items, the tax items shall be listed separately otherwise the highest applicable shall apply.

Tax payment period

  • Quarterly or annual taxpayers shall declare and pay within 15 days from the end of the quarter or year-end.
  • Per basis taxpayers shall declare and pay within 15 days from the date of the tax obligation
  • Securities transactions shall be paid on weekly basis

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