Laws of the People's Republic of China

Circular of the Ministry of Finance and the State Administration of Taxation concerning Several Policies on Stamp Tax

Cai Shui [2006] No.162

The public finance departments (bureaus) and local tax bureaus of each province, autonomous region, municipality directly under the Central Government, and cities specifically designated in the state plan, and the Financial Bureau of Xinjiang Production and Construction Corps.:

With a view to adapting to the development and change of economic situation and perfecting tax system, we hereby clarify the related policies on stamp tax as follows:

1.

Stamp tax shall be imposed on the conditions that taxpayers conclude taxable vouchers in electronic form.

2.

As regards the power purchase/sales contract concluded between a power plant and a power network or between power networks (except the power provided by the various levels of networks within the State Grid Corporation of China and China Southern Power Grid Corporation), stamp tax shall be imposed as sales contract. The power supply contract concluded between a power network and a user is not a taxable voucher listed under stamp tax and stamp tax shall not be levied.

3.

As regards a contract for assignment or transfer of land use right, the stamp tax shall be collected upon the strength of the property transfer document.

4.

As regards a sales contract of assignment or transfer of the land use right, the stamp tax shall be levied upon the strength of the property transfer document.

The Ministry of Finance

The State Administration of Taxation

November 27, 2006