Provisions of the Administration of Taxation of the Ministry of Finance on Several Specific Issues concerning Stamp Tax

Provisions of the Administration of Taxation of the Ministry of Finance on Several Specific Issues concerning Stamp Tax
Provisions of the Administration of Taxation of the Ministry of Finance on Several Specific Issues concerning Stamp Tax

Guo Shui Di Zi [1988] No.25

December 12, 1988

Tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, tax bureaus of Nanjing City and Chengdu City, and branches of the Offshore Petroleum Tax Bureau,

Pursuant to the Interim Regulations of the People's Republic of China on Stamp Tax (hereinafter referred to as the "Regulations") and its implementing rules and based on the actual conditions fed back by all regions, several specific issues concerning stamp tax are hereby stipulated as follows:

I. How to affix revenue stamps to the processing and customization contracts under which raw materials shall be provided by the commissioned party?
In respect of a processing or customization contract under which raw materials are provided by the commissioning party, where the amounts of processing and raw materials are separately recorded in the contract, the tax shall be calculated in accordance with the "processing contract" and "purchase and sales contract" respectively, and the sum of such taxes are the stamp tax to be levied on the contract; where there is no such separation in the contract, the total amount shall be subject to stamp tax calculated pursuant to the "processing contract".

II. Is stamp tax necessary for repair orders issued for the sporadic processing and repairing business of shops and salesrooms?
No stamp tax shall be levied on repair orders issued for the sporadic processing and repairing business of shops and salesrooms.

III. Shall stamp tax be necessary for house lease contracts signed between the property management department and individuals?
The house lease contract concluded between the property management department and individuals for residential purpose shall be temporarily exempted from stamp tax; such contracts for production and operation purposes shall be stamped.

IV.
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