Reduction and Exemption of Stamp Tax

(1) Duplicates or copies of documents on which Stamp Tax has already been paid.

(2) Documents executed when property is donated to the government, social welfare units or schools.

(3) Agriculture by-product purchase contracts concluded between State-designated purchasing departments and village committee and individual peasants.

(4) Non-interest bearing or discounting loans contracts.

(5) Preferential loans contracts concluded between foreign governments or international financial institutions and Chinese government or State financial institutions.

(6) Other documents approved by the Ministry of Finance for exemption from Stamp Tax.

Duplicates or copies of documents on which Stamp Tax has already been paid herein refer to cases where Stamp Tax has already been paid on the official version of a document in accordance with regulations and any duplicates or written copies are then exempt from Stamp Tax if they do not dictate any rights and obligations involving others, but are retained only for reference purposes. Social welfare units herein refer to social welfare units that care for orphans, the elderly, the injured and the disabled.

2. The range of tax exemption also includes the following items:

(1) For the house-leasing contracts concluded between real estate administration and individual(s), stamp tax may be exempted for the residential use of house and stamp tax shall be paid for the production and operation use.

(2) For leased-operation contracts concluded between enterprises and administration in charge which exclude property leasing contract, stamp tax may be exempted.

(3) Consignment contract for purchase or sale may be exempted from stamp tax temporarily.

(4) For the purchasing-in-advance and purchase contracts of farm, forestry, poultry and aquatic products concluded directly with villager committee or peasants, stamp tax may be exempted temporarily.

(5) For water-supplying, electricity-supplying and gas (gasoline)-supplying contracts which don't belong to purchase and sale contracts prescribed in Provisional Regulations of the People's Republic on China Stamp Tax, stamp tax may be exempted.

(6) Since the loan contract stipulated in Provisional Regulations of the People's Republic on China Stamp Tax refers to the loan contract concluded with banks or other financial organizations, the loan contract concluded with non-financial organizations or individuals may be exempted from stamp tax.

(7) Compensation agreements for land expropriation, used-estate reforming, house removal shall be exempted from stamp tax.

(8) Land-use-right-transfer contract not listed in taxable vouchers may be exempted from stamp tax.

(9) Publishing contract not listed in taxable vouchers may be exempted from stamp tax.

(10) Since accounting books of public treasury operated by all levels of People's Bank of China or acting by all levels of professional banks don't belong to accounting books for bank operation, stamp tax may be exempted.

(11) Since the acting contracts concluded between clients and agents and only prescribing acting objects, purview and responsibilities don't belong to taxable contracts, stamp tax may be exempted.

(12) For the loan deferment contracts or other vouchers used in loan deferment business which only prescribing deferring payment items in accordance with credit and loan regulations, stamp tax may be exempted.

(13) For familial property insurance contracts prescribing individual payment of insurance premium, stamp tax may be exempted.

(14) For the account book and other internal accounting books recording essential endowment insurance (retirement pension) by Social Labor Insurance companies, stamp tax may be exempted temporarily.

(15) Since consultation on ordinary laws, regulations, accounting and auditing is not listed in technology consultation, the contracts on above-mentioned consultation may be exempted from stamp tax.

(16) Technology training contract refers to that one party entrust the other to make technical instruction and professional training on special project. Since the contracts on all kinds of vocational education, schooling and learning at leisure time are not listed in technology training contracts, stamp tax may be exempted.

(17)If the ordinary annual working capital loan contract can be repaid and loaned simultaneously within certain quota and shall not resign new loan contracts, stamp tax may be exempted.

(18) The insurance contracts on farm, forestry, pasturing and poultry products may be exempted from stamp tax in order to support the development of country insurance business and lesson the burden of farm, forestry, pasturing and poultry production.

(19) The Army Special-Use Contracts may be exempted from stamp tax, which refers that Army enterprises manage the factories to dispatch munitions with all army units (excluding army-established enterprises) and armed police units and supplying the services such as processing, repair, assembly, trial-leasing and storage to military system.

3. Regulations on the tax-exemption of account books

(1) Recording books, statistic books established by workshop, salesroom and warehouse and out of the accounting range or within the accounting range but not recording the amount, may be exempted from stamp tax.

(2) Capital account books at the time of commencing use in which capital amount has not increased need not be stamped.

(3) For public service units which State Finance Administration allocates funds with balance budget management, their account books recording business shall pay stamp tax on the capital amount as other accounting books and those not recording business shall be exempted from stamp tax.

(4) For the merger of state-owned enterprises and collective enterprises approved by administration in charge, if the merger documents of being-annexed enterprise have been stamped according to the merger amount, merger documents of merger enterprise shall be exempted from stamp tax.

(5) For the industrial, commercial and material enterprises which take special tasks of storing materials and goods for the government, the special reserve shall be exempted from stamp tax. But these special reserves should be examined and approved by local taxation administration in accordance with financial and accounting system.

(6) For all kinds of register books established by the banks for their business needs such as void register book of important documents, register of value documents etc., if the content of these books has no relation with capital activities and only for internal recording, which belong to non-business books, these books shall be exempted from stamp tax.

(7)Saving individual books for separate account established by banks and city credit unions for saving business shall be exempted from stamp tax.

4. Regulations of tax-exemption for freight documents.

(1) Stamp tax may be exempted for carriage settlement documents of military materials with special use or military transportation orders.

(2) Stamp tax may be exempted for carriage settlement documents affixed with testimonial of emergency and rescue materials of (higher than) country-level People's government.

(3) Stamp tax may be exempted for Special carriage settlement documents of transporting construction material for new train line by engineering temporary managing line.

(4) Stamp tax may be exempted for one freight settlement document hold by foreign transportation enterprise which transport import or export goods on international freight business.

5. Regulations of tax-exemption of other documents:

(1) The repair bills of sporadic processing and repair business of stores and salesroom need not be stamped.

(2) Shipping bills of express package and baggage by railway, highroad, airline and water carriage may be exempted from stamp tax.

(3) Stamp tax may be exempted for subscription documents of books, papers, periodical, CD and other video products which are concluded between all kinds of publishing units or between publishing unit and subscribing unit or individuals.