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What is stamp duty?

Hello, stamp duty is a tax levied on the act of entering into and receiving legally valid certificates in economic activities and economic transactions. It got its name from the fact that tax stamps are affixed to taxable certificates as a sign of tax payment. Taxpayers of stamp duty include enterprises, administrative units, public institutions, military units, social groups, other units, individual industrial and commercial households and other individuals established in China and receiving required economic certificates.

At present, the stamp tax on stock transactions has been changed from bilateral levy to unilateral levy on the seller. 0.1 of the transaction amount is charged, which is withheld by the securities firm, paid by the exchange, and paid to the finance and taxation department. Stamp duty is only charged when selling stocks, not when buying stocks. There is no stamp duty on transactions such as buying and selling on-market funds and bonds.