According to the provisions of China's tax law, the tax refund received by individuals needs to pay value-added tax and stamp duty. VAT is a basic consumption tax in China. Its purpose is to convert the tax generated by the economic activities of enterprises into the consumption tax of consumers' income or expenditure, mainly for the sale of goods and services. The income of stamp duty mainly comes from financial activities, mainly collecting taxes on securities, futures, bonds and other transactions to promote financial stability. The tax refund received by individuals is generally the income of enterprises, and only value-added tax is required, and stamp duty is not required.

Tax basis for stamp duty is as follows:

1. The taxable contract is based on the amount listed in the contract, excluding the listed value-added tax;

2. The taxable basis of the taxable property right transfer certificate is the amount listed in the property right transfer certificate, excluding the listed value-added tax;

3. The taxable business account book is based on the paid-in capital (share capital) and total capital reserve recorded in the account book;

4. The tax basis of securities trading is the transaction amount.

To sum up, stamp duty is a kind of tax levied on the behavior of concluding and receiving legally effective certificates in economic activities and economic exchanges, and it is named because it is used to paste tax stamps on taxable certificates as a symbol of tax payment. It can be purchased and pasted by taxpayers themselves according to the prescribed taxable proportion and quota, or it can be entrusted to collect it on behalf of the tax authorities through the units that issue or handle taxable vouchers.

Legal basis:

Article 4 of People's Republic of China (PRC) Stamp Tax Law

The tax items and tax rates of stamp duty shall be implemented in accordance with the table of stamp duty items and tax rates attached to this Law.