China’s new Stamp Tax Law takes effect July 1, 2022 – there will be some updates to the existing system of taxation, such as the simplification of tax compliance, changes to some tax rates, and new exemptions.
On June 10, 2021, the Stamp Tax Law was passed by the Standing Committee of the 13th National People’s Congress at the 29th session, which will take effect from July 1, 2022.
The current governing regulation, the Interim Regulations of the People’s Republic of China on Stamp Tax (the “Interim Regulations”) promulgated by the State Council on August 6, 1988, will be repealed simultaneously by then.
Compared to the Interim Regulations, the Stamp Tax Law maintains most of the current stamp taxation system generally, but at the same time, there are some noteworthy changes, including appropriate simplification of tax items and tax cuts.
The major changes are summarized below.
Bearing the changes of the Stamp Tax Law in mind, we would also like to bring some points to your attention in dealing with stamp tax in your daily operations:
In 2015, the State Taxation Administration released the Guiding Opinions on Comprehensively Promoting the Governing of Taxes according to Law (Shui Zong Fa  No.32), stipulating that China will accelerate the process of upgrading relevant tax regulations into law, to improve the certainty of tax policies, enhance the authority of the tax documents, and ensure the efficiency of tax administrations. This is an important part of China’s broader efforts to achieve rule of law, that is, law-based governance of the country.
With the promulgation of the Stamp Tax Law, China has made laws for 12 of the 18 existing taxes. Businesses are well advised to keep a close eye on the future developments of China’s tax laws as it is related to how they will pay tax in China.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at firstname.lastname@example.org.
Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.
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