China intends to enact a stamp duty law to maintain current tax rates such as securities transaction tax unchanged

　　China News Service, Beijing, February 27 (Reporter Liang Xiaohui) The draft stamp duty law was submitted to the 13th National People's Congress Standing Committee for the first review on the 27th.

The draft basically maintains the current tax rate. Tax items such as loan contracts, sales contracts, technology contracts, and securities transactions remain unchanged.

　　In August 1988, the State Council of China issued the "Interim Regulations on Stamp Duty of the People's Republic of China", which stipulated that units and individuals that wrote or received contracts, transfer documents, business account books and rights, licenses and other taxable documents in China should pay stamp tax .

In 1992, China uniformly imposed stamp duty on stock transactions on the Shanghai Stock Exchange and Shenzhen Stock Exchange.

In 2018, the State Council agreed to impose stamp duty on the transferor of depository receipts.

Since the implementation of the Interim Regulations, stamp duty has been running smoothly.

　　China's enactment of the Stamp Tax Law this time generally follows the tax system shifting thinking, maintaining the current tax system framework and tax burden levels basically unchanged, and upgrading the "Interim Regulations" and the relevant provisions of the securities transaction stamp tax into law.

At the same time, necessary adjustments were made to some of the contents according to the actual situation, and tax items were appropriately simplified and some tax rates were reduced.

　　With regard to taxpayers, the draft stipulates that entities and individuals that issue taxable vouchers or conduct securities transactions within China are taxpayers of stamp duty.

The securities transaction stamp duty is levied on the transferor of the securities transaction, but not on the transferee.

　　In terms of tax items and tax rates, the draft basically maintains the current tax rate level, appropriately condensing tax items and tax rates and reducing tax burdens.

One is to maintain the current tax rates for loan contracts, sales contracts, technology contracts, securities transactions and other tax items; the other is to reduce the tax rates on processing contract contracts, construction engineering survey and design contracts, and cargo transportation contracts from five ten thousandths to three ten thousandths. ; The third is to reduce the tax rate of the business account books from five ten thousandths to 2.5 ten thousandths; the fourth is to abolish the requirement of 5 yuan (RMB) stamp duty on rights and licenses.

　　In terms of tax incentives, the draft generally maintains the current tax incentive policies unchanged. While retaining the tax exemption provisions in the "Interim Regulations", some of the tax incentive policies stipulated in the current relevant documents are upgraded to law.

At the same time, it is stipulated that in accordance with the needs of national economic and social development, the State Council may stipulate the reduction or exemption of stamp duty and report to the Standing Committee of the National People's Congress for the record.

(Finish)