September 30 2024

China, Stamp Tax Policies for Enterprise Restructuring and Public Institution Reform

On September 4th, 2024, the Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Announcement on Relevant Stamp Tax Policies for Enterprise Restructuring and Reorganization and the Reform of Public Institutions (the "Announcement"), effective from October 1st, 2024, to December 31st, 2027.
The Announcement specifies the eligibility of relevant policies for the stamp taxes on business ledgers, various taxable contracts, property transfer documents, and those for restructuring and reorganization, among other policies and matters. According to the Announcement, for newly established enterprises arising from enterprise restructuring and reorganization and the reform of public institutions, the total amount of paid-in capital (share capital) and capital reserves recorded in the new business ledgers will be exempt from additional stamp tax on the portion that has already been taxed. For the debt-to-equity swaps in the restructuring projects approved by the State Council, the increased paid-in capital (share capital) and capital reserves resulting from the debt-to-capital conversion will be exempt from stamp tax.

Announcement: 关于企业改制重组及事业单位改制有关印花税政策的公告 (mof.gov.cn)