How To Register for Stamp Duty Tax In China
- Enterprises and their affiliates, departments of business and production in other areas of the United States, individuals proprietors of businesses and industries and other enterprises operating in business or production operation (hereinafter called taxpayers who are engaged in business and production) must seek tax registration with local tax authorities in the area where they are engaged in production and/or business operations.
- Taxpayers will be provided with tax registration forms by the tax authority in charge or tax registration centres and fill them out as needed.
- The tax authority as well as tax registration centres will review and verify the papers, documents, and other materials along with tax registration form provided by taxpayers. They will provide tax registration certifications to taxpayers who satisfy the requirements and then collect tax registration costs as well as administrative charges
Documents that are required Register for Stamp Duty Tax
- A commercial and industrial business license or similar permits for business operation
- The contract or agreement, and articles of association
- The unifying organizational code
- Identification card or passport, or any other valid ID proof from the representative of legal or a responsible owner’s member.
- Other documents and documents are also required by tax authorities of an autonomous region, province or municipal directly under the state council. State Council
Office Locations and Contacts
The State Administration of Taxation Address Yangfangdian Road, Haidian District on the 5th
State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
What Are All The Eligibility
The following are tax-deductible instruments and deeds:
- Contracts or other deeds as well as instruments that are in the form of purchase contracts or sales construction projects leasing of property cargo transportation storage and warehousing loan, insurance for property and technology transfer;
- Transfers of rights to proprietary ownership;
- Books for the business account;
- Certifications, rights certificates and licences
Other documents designated as tax-deductible to Ministry of Finance. Ministry of Finance.
Taxpayers should determine how much tax due according to different tax rates or according to unit norms in context of the documents and deeds. The rates and amount of tax must be based on the “Table of Rates and Items for Stamp Tax” which is attached to the Regulations.
- The name and identification number on the passport, ID card, or other acceptable ID document from the institution, its legal representative or the owner
- The address of the business or residence
- The kind of registration
- The accounting system
- The production model and the business operation
- The production scope and operations
- The sum in capital (fund) and investment
- The definition of production and operation
- The name and number of the chief financial officer.
- Other information as specified in the State Administration of Taxation
The Document is required Register for Stamp Duty Tax
Stamp taxes are charged to all entities and individuals that execute or accept the taxable instruments stipulated in tax laws during exchanges and economic activities. As regards the tax on stamps, the amount to be paid is determined based on different proportionate tax rates based on the cost of the contract or based on an amount fixed per instrument in context of the character of tax-paying instruments.
Information that can be useful
The following items are exempt from tax on stamps:
- Duplicates or copies deeds for which stamp tax was paid.
- Donations of property made by an owner state or an institution of public welfare or a school;
- Other deeds are free of stamp tax if they are approved from Ministry of Finance. Ministry of Finance.
Other uses of the document/certificate
Any person or institution that is establishing or accepting deeds, or other instruments mentioned within the Regulations within the area of the People’s Republic of China should be taxpayers of stamp tax (hereinafter known as”the taxpayer”) and must pay stamp tax in accordance with the regulations within the Regulations.
- Provisory Regulations for Stamp Taxes of China Peoples Republic of China
- Tax Law
- State Administration for Industry and Commerce People’s Republic of China
- State Administration of Taxation of the People’s Republic of China
- Ministry of Commerce, the People’s Republic of China
- Tax Law
- State Administration of Taxation
Four levels are available for proportionate tax rates i.e. 1.5 percent, 0.5%, 0.3 percent, and 0.05 percent. In the instance of a purchase and sale contract the tax rate proportionate to the amount is 0.3 percent of the value of the sale and purchase and in the case of processing contracts, 0.5% of processing fees or contract receipts; for a property lease contract 1 percent of the lease value; in the case of a loan contract, 0.05% of the loan amount. According to the terms of the permit or license the set quantity of RMB 5 is required for each document. The stamp tax must be paid in a way that taxpayers must, in line to the regulations to calculate the tax amount to be paid to purchase, and then apply at the same time the entire quantity of tax-exempt stamps. According to the terms of an equity transfer agreement the stamp tax will be in turn payable in the name of the party to this instrument at a percentage of 3% of the amount determined on the basis of the transaction’s actual price in the securities market on the date of execution of the instrument.