Issued by: Ministry of Finance, State Administration of Taxation
Issue No.: Announcement No.14 (2024) of the Ministry of Finance and State Taxation Administration
Release Date: August 27, 2024
Effective date:  October 1, 2024
Links: https://fgk.chinatax.gov.cn/zcfgk/c102416/c5234299/content.html

The announcement primarily clarifies various stamp tax regulations applicable during the process of enterprise reform and restructuring as well as the reform of public institutions (referred to as "enterprise restructuring"):
1. Regarding business account books
a. For new enterprises established during the process of enterprise reorganization, the paid-in capital in the newly opened business account books shall not be subject to double stamp tax, provided that the capital has already been taxed once.
b. The combined amount of additional paid-in capital and capital reserve resulting from the conversion of corporate debt to equity shall be subject to stamp tax. However, in cases of debt-to-equity conversions occurring within restructuring projects approved by the State Council, the aforementioned matters are exempt from stamp tax.
c. The combined amount of additional paid-in capital and capital reserve resulting from the valuation increase during the process of enterprise restructuring shall be subject to stamp tax.
d. If other accounting items of an enterprise are converted into paid-in capital or capital reserve, stamp tax shall be paid.

2. Regarding various taxable contracts
a. Various taxable contracts established before the enterprise restructuring but not yet fully executed, which are inherited by the restructured entity without changing the original tax basis, will not be subject to double stamp tax.

3. Transfer documents of property rights are exempt from stamp tax in the following circumstances:
a. Property transfer documents established during enterprise reform, merger, division, bankruptcy liquidation, and the reform of public institutions;
b. Property transfer documents established as a result of administrative adjustments to land use rights, ownership of houses, and equity, carried out by county-level or higher people's governments or their departments responsible for state asset management, in accordance with regulations
c. Property transfer documents established for the internal transfer of land use rights, ownership of buildings and structures, and equity within the same investment entity.