(Promulgated on Order [1988] No. 11 of the State Council on Aug. 6, 1988)

Article 1 All institutions and individuals establishing or accepting deeds or other instruments cited in these Regulations within the territory of the People's Republic of China shall be payers of stamp tax (hereinafter referred as the taxpayer) and pay stamp tax in accordance with the provisions of these Regulations.

Article 2 The following are taxable deeds and instruments:

Contracts or other deeds and instruments in the nature of contracts of purchases and sales, processing, construction projects, lease of property, cargo shipment, storage and warehousing, loans, property insurance and technology transfers;

1. Deeds of transfers of proprietary rights;

2. Business account books;

3. Certificates of rights and licenses;

4. Other documents specified as taxable by the Ministry of Finance.

Article 3 A taxpayer shall assess the amount of tax payable at different proportionate tax rates or by unit norms in the light of the nature of the deeds and instruments. The specific rates and amounts of tax shall follow the "Table of Items and Rates of Stamp Tax" attached to these Regulations.

The amount of tax payable of less than one Jiao (one-tenth of one yuan) shall be exempt from tax.

The fractional number of a tax amount of less than five Fen (one-hundredth of one yuan) shall not be accounted for and that of more than five Fen shall be accounted for one Jiao.

Article 4 The following shall be exempt from stamp tax:

1. Duplicates or copies of those deeds on which stamp tax has been paid;

2. Deeds of donations of property by the owner to the government, a public welfare institution or school;

3. Other deeds free of stamp tax upon approval by the Ministry of Finance.

Article 5 Payment of stamp tax shall be completed once for all by the taxpayer buying the full amount of the stamp and affixing it on the deed based on its own assessment in accordance with the regulations (hereinafter referred to as stamping).

In order to simplify the procedure, in the case of a large amount of the stamp tax or the need of frequent stampings, the taxpayer may apply to the tax authorities for pooled payment for the amounts of stamp tax payable or by installment payment in stead of stampings.

Article 6 Tax stamps shall be affixed to the deed taxable and cancelled on the border thereof by a seal print or lines executed by the taxpayer.

A stamp once affixed cannot be reused.

Article 7 Stamps shall be affixed at the time of establishment or acceptance of a deed.

Article 8 In case of two or more copies of a deed to be kept by two or more parties concerned, stamps shall be affixed in full amount to each copy by each party.

Article 9 In the case of a deed already stamped where the sum of money indicated has increased after a revision, the additional sum established on the deed shall require additional tax stamps to be affixed to.

Article 10 Stamp tax shall be administered and levied by the tax authorities.

Article 11 Tax stamps shall be printed under the supervision of the State Administration of Taxation. The face value of stamps shall be in RMB.

Article 12 Institutions distributing and handling taxable deeds shall be responsible for the supervision over the tax paying obligations of the taxpayers

Article 13 The tax authorities shall mete out penalties to a taxpayer with one of the following cases in the light of the degree of gravity of the case:

1. For a case of failing to affix or under-affix stamps on taxable deeds, the tax authorities shall make the taxpayer affix the sufficient amount of stamps and impose a fine up to 20 times the amount of tax payable;

2. For a case in violation of Clause 1 of Article 6 of these Regulations, the tax authorities shall impose a fine up to ten times the value of the stamps un-cancelled by seal print or lines.

3. For a case in violation of clause 2 of Article 6 of these Regulations, the tax authorities shall impose a fine up to 30 times the face value of the reused stamps.
Anyone counterfeiting tax stamps shall be brought to justice to seek criminal responsibilities in accordance with the law.

Article 14 In addition to the provisions of these Regulations, the administration of stamp tax shall follow the provisions of the "Provisional regulations on Tax Administration of the People's Republic of China".

Article 15 The Ministry of Finance shall be responsible for the interpretation of these Regulations and formulate the rules for the implementation thereof.

Article 16 These Regulations shall go into effect as from October 1, 1988...