In Finance, What Is Stamp Duty?

Stamp tax is a tax levied on the conduct of economic activities and economic exchanges to establish and receive legally valid vouchers. It is named after the use of a stamp on the taxable voucher as a sign of tax payment. Taxpayers of stamp duty include enterprises, administrative units, public institutions, military units, social organizations, other units, individual industrial and commercial households, and other individuals established in China and receiving prescribed economic credentials.

Basic Information

Chinese name
Stamp duty
The business books in the stamp tax items belong to the financial accounting books, which are set up in accordance with the requirements of the financial accounting system and reflect the books of production and business activities.
(1) Funds account book
(2) Other business books are books that reflect the content of production and operation activities other than capital assets, that is, books other than capital books that belong to the financial accounting system for production and operation.
China's adjustment and its impact on the stock market
time
Adjustment of stamp duty on securities transactions
April 24, 2008
Adjusted from 3 to 1 only charged by the transferor, the transferee no longer collects
May 30, 2007
Adjusted from 1 to 3
January 24, 2005
Adjusted from 2 to 1
November 16, 2001
Adjusted from 4 to 2
June 1, 1999
B share transaction stamp tax reduced to 3
June 12, 1998
Reduced from 5 to 4
May 12, 1997
Increased from 3 to 5
Early 1996 to May 1997
Stamp duty remains at 3
June 12, 1992
Pay stamp duty at the rate of 3
October 1991
Shenzhen Stock Exchange was adjusted to 3 , Shanghai Stock Exchange began to levy 3
November 23, 1990
Shenzhen City levies 6 stamp duty on buyers
June 28, 1990
Shenzhen City levies 6 stamp duty on sellers
Downgrade benefits
Eliminating stamp duty can send a clear signal to investors;
Stimulate the trading volume of financial product transactions and prosper the capital market;
The disadvantages of taxation in the heavy trading link have been suppressed.
Reason for tax adjustment
The tax rate is too high. China has the highest stamp duty on securities transactions in the world;
Adjustments are frequent. Since the introduction of the levy, stamp duty rates for securities transactions have been adjusted several times, and almost all of them have been announced suddenly.
Ministry of Finance: Stamp duty exemption for loan contracts between financial institutions and small and micro enterprises The Ministry of Finance announced on October 24, 2011 the Notice on the Exemption of Stamp Duty for Signing Loan Contracts between Financial Institutions and Small and Micro Enterprises.
(The full text is as follows) The financial department (bureau) of each province, autonomous region, municipality directly under the Central Government, city with single plan, local tax bureau,
Article 1 Units and individuals who issue and receive certificates listed in these regulations within the territory of the People's Republic of China are all taxpayers of stamp duty (hereinafter referred to as taxpayers) and shall pay stamp duty in accordance with the provisions of these regulations.
Article 2 The following vouchers are taxable vouchers:
Purchase and sale, processing contract, construction project contract, property lease, cargo transportation, warehousing, loan, property insurance,
Taxpayers who commit one of the following acts shall be punished by the tax authorities according to the seriousness of the circumstances:
1. If the tax stamp is not affixed to the taxable voucher or the tax stamp is not affixed, the tax authority may, in addition to ordering it to subsidize the stamp tax ticket, impose 3 to 5 times the amount of the subsidy stamp tax ticket.
United States: Abolished in 1966;
Japan: Abolished in 1999;
Singapore: Abolished in 2001, Securities Trading
The collection and management of stamp duty by the Hong Kong stamp duty management body is mainly done by the Stamp Duty Department. The Commissioner of Stamp Duty and his authorized personnel in writing have the right to make decisions on stamp tax assessment, payment, reduction and exemption. Documents subject to stamp duty The Stamp Duty Ordinance (Cap. 117) collects taxes on certain types of documents. The main documents are as follows:
Exclusion is included in the scope of the Electronic Transactions Regulations.
According to section 3 and Schedule 1 of the Electronic Transactions Ordinance (Ordinance No. 1 of 2000), except for the contract documents to which the agreement referred to in section 5A of the Stamp Duty Ordinance (Cap. 117) relates, the "Electronic Transactions Sections 5, 6, 7, 8 and 17 of the Ordinance do not apply to the establishment, execution, or execution and execution of instruments which are required to be stamped or endorsed under the Stamp Duty Ordinance. In other words, with the exception of stock transaction contract documents issued and stamped by stock brokers on the Stock Exchange, all instruments that need to be stamped or endorsed in accordance with the Stamp Duty Ordinance cannot be made or executed electronically .

How to stamp stamps

Except for transfer documents that can be stamped with a licensed stamping machine, all stamp duty-collectible documents must be submitted to the Stamp Office for stamping.
Document stamping
(a) Documents may be submitted in person to the Stamp Office for stamping. Alternatively, documents can be sent to the Stamp Office.
(b) If the relevant document is a lease with general terms, you can calculate the stamp duty payable by yourself and return the lease to the Stamp Office together with a crossed cheque stating payment to the "Hong Kong Government" Process for stamping.

Stamp duty charges

The amount of stamp duty is determined by the nature of the instrument subject to stamp duty. [If the calculated stamp duty includes less than $ 1, the shortfall must be calculated as $ 1.
Validity of unstamped documents
Any instrument chargeable with stamp duty shall not be received as evidence in any legal process unless it is duly stamped, except in the following legal proceedings:
It should not be used for any other purpose:
However, if the court issues an order for collection after the lawyer has personally promised to arrange for the following matters, an unstamped document may be received in court in civil proceedings as evidence:
(i) stamped with stamp duty chargeable on that instrument; and
(ii) pay a fine payable in respect of that instrument under section 9.
According to section 27 (4) of the Stamp Duty Ordinance, if the Commissioner of Stamp Duty considers that the consideration of the conveyance on real property or the transfer of Hong Kong stocks is insufficient, the sale is still based on fair dealing and good intention Will be treated as a free disposition (ie a gift) between the living. Therefore, the stamp duty on the conveyance or transfer letter will be calculated as the value of the property or securities, and the Stamp Office may levy further stamp duty as the case may be. Section 29F of the Stamp Duty Ordinance contains similar requirements for residential property sale and purchase agreements.
Appeal against stamp duty assessment
Anyone who is dissatisfied with the assessment made by the Commissioner of Stamp Duty may appeal to the District Court against the assessment within one month from the date of assessment and after paying stamp duty at the assessed amount. The court will then determine the appropriate amount, if any, of the stamp duty chargeable on the instrument. Any overpaid stamp duty will be refunded.

Stamp duty rate

Stock transactions are levied at 0.225% of the transaction price, and 0.25% for the year of assessment 1999/2000.
Real estate transactions: Transaction prices range from 0.75% to 3.75%.
Taxation scope
Economic contract category (10 categories)
Purchase and sales contracts, processing contracts, construction engineering survey and design contracts, construction and installation engineering contract contracts, property lease contracts, cargo transportation contracts, storage contracts, loan contracts, property insurance contracts, and technology contracts.
[Explanation 1] Technology contracts include technology development contracts, technology transfer contracts, technology consulting contracts, and technical service contracts. Among them, the technology transfer contract includes the contract signed by the patent application right transfer and the non-patent technology transfer, but does not include the contract signed by the patent right transfer and patent implementation license, which is applicable to the "property transfer document".
[Explanation 2] No matter whether the contract is fulfilled or whether it can be fulfilled on schedule, stamp duty should be paid.
[Explanation 3] For a business (such as cargo transportation, warehousing, property insurance, bank borrowing, etc.), if both a contract is signed and a document is issued, only the contract is decaled; if the contract is not signed, only the document is issued If a document is used as a contract, the document used shall be decalmed in accordance with regulations.
Pay attention to the following specific content:
(1) In the purchase and sales contract:
The above-mentioned various taxable vouchers signed by the taxpayer in electronic form levy stamp tax in accordance with regulations;
Stamp duty is levied on the purchase and sale of electricity contracts signed between the power plant and the power grid and between the power grid and the power grid.
Note : No stamp duty is levied on the power supply contract signed between the power grid and users.
(2) Construction and installation engineering contract: includes general contract, subcontract and subcontract of construction and installation engineering contract.
(3) In the property lease contract: it does not include the lease contract signed by the enterprise and the competent department.
(4) In the loan contract: interbank borrowing is not included.
Tip : A financial lease contract is a loan contract.
(5) Technical contract
Technology transfer contract: Includes contracts signed by patent application transfer and non-patent technology transfer, but does not include contracts signed by patent transfer and patent implementation license (this is a "property transfer document")
Technical consulting contracts do not include general legal, accounting, auditing and other consulting contracts. These contracts are not stamped.
The taxation scope of technical service contracts includes technical service contracts, technical training contracts and technical intermediary contracts.
Documents of transfer of property rights: Documents of transfer of property ownership and copyright, exclusive use of trademarks, patent rights, and use of proprietary technology.
(1) Stamp duty is levied on the land use right transfer contract, land use right transfer contract, and commercial house sales contract in accordance with the title transfer document.
(2) The contract for the transfer of patent rights and the license for patent implementation is a "document of transfer of property rights"
Title Transfer Document
Property right transfer documents include property ownership, copyright, trademark exclusive rights, patent rights, and proprietary technology use rights.
[Explanation 1] The document of transfer of property ownership refers to the document issued by the transfer of ownership of real and movable property registered by the government management agency.
[Explanation 2] Stamp duty is levied on the land use right transfer contract, land use right transfer contract, and commercial house sales contract in accordance with the title transfer document.
Business books
(1) Fund books. It is a book that reflects the increase and decrease in the amount of "paid capital" and "capital reserve" of production and operation units.
(2) Other business books. It is a book that reflects the content of production and operation activities other than capital assets, that is, the book for production and operation belonging to the financial accounting system other than the fund book.
Rights and licenses: house property certificate, business license, trademark registration certificate, patent certificate, land use certificate.
Gazette of Hong Kong Stamp Duty (Amendment) Bill 2013
According to the Information Services Department of the Hong Kong Special Administrative Region Government, the Stamp Duty (Amendment) Bill 2013 was gazetted on the 5th. The Bill seeks to implement new measures approved by the Chief Executive in Council and announced on 22 February to further cope with the overheated property market.

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