Provisional Regulations on Stamp Duty of the People's Republic of China Issue Number: State Council Order No. 011 Issue Date: August 06, 1988 Status: Effective State Council Order [1988] No. 11 Article 1 in China The People's Republic of China and the entities and individuals within the country that create and receive the vouchers listed in these regulations are all taxpayers of stamp tax (hereinafter referred to as taxpayers) and shall pay stamp tax in accordance with the provisions of these regulations. Article 2 The following vouchers are taxable vouchers: 1. Purchase and sale, processing contracting, construction project contracting, property leasing, cargo transportation, warehousing, borrowing, property insurance, technical contracts or vouchers with a contractual nature; 2. Property transfer documents; 3. Business account books; 4. Rights and licenses; 5. Other tax certificates determined by the Ministry of Finance. Article 3 Taxpayers shall calculate the tax payable according to the proportional tax rate or fixed amount per piece according to the nature of the taxable voucher. The specific tax rates and tax amounts are determined in accordance with the "Stamp Duty Items and Rates Table" attached to these Regulations. If the amount of tax payable is less than a dime, stamp duty is exempted. If the amount of tax payable is more than one jiao, the tax amount less than five points will not be counted, and the tax amount that is more than five points will be calculated and paid as one jiao. Article 4 The following certificates are exempt from stamp duty: 1. A copy or transcript of the voucher for which stamp duty has been paid; 2. A document issued by a property owner donating property to the government, social welfare unit, or school; 3. Other tax exemption certificates approved by the Ministry of Finance. Article 5 Stamp tax shall be paid by taxpayers calculating the amount of tax payable by themselves in accordance with regulations, purchasing and affixing all tax stamps (hereinafter referred to as decals) at one time. In order to simplify the decal procedure, if the amount of tax payable is large or the number of decals is frequent, taxpayers may apply to the tax authorities to replace the decals with a payment letter or to make collective payments on a regular basis. Article 6 Tax stamps shall be affixed to taxable vouchers, and the taxpayer shall stamp or cancel the stamp at the seam of each tax stamp. Tax stamps that have been affixed may not be reused. Article 7 Taxable vouchers shall be stamped when they are written or received. Article 8 If the same voucher is signed by two or more parties and each party holds one copy, each party shall affix the full amount of the one copy held. Article 9 If the amount contained in a decaled voucher increases after modification, the increase shall be subsidized by the stamp tax stamp. Article 10 Stamp duty shall be collected and managed by the tax authorities. Article 11 Tax stamps shall be produced under the supervision of the State Taxation Bureau. The face amount is in RMB. Article 12 The unit that issues or handles taxable certificates shall have the obligation to supervise taxpayers to pay taxes in accordance with the law. Article 13 If a taxpayer commits any of the following acts, the tax authorities will impose penalties according to the seriousness of the case: 1. If no or less tax stamps are affixed to the taxable voucher, the tax authorities, in addition to ordering them to subsidize the tax stamps, may impose a fine of not more than 20 times the amount of the tax stamps that should be subsidized; 2. In violation of the provisions of Article 6, Paragraph 1 of these Regulations, the tax authorities may impose a fine of not more than 10 times the amount of the tax stamp that has not been canceled or canceled; 3. In case of violation of Paragraph 2 of Article 6 of these Regulations, the tax authorities may impose a fine of not more than 30 times the amount of the reused tax stamp. Anyone who forges tax stamps shall be submitted by the tax authorities to the judicial authorities for criminal liability in accordance with the law. Article 14 The collection and management of stamp duty, except as provided in these regulations, shall be implemented in accordance with the relevant provisions of the "Interim Regulations of the People's Republic of China on Tax Collection and Management". Article 15 The Ministry of Finance is responsible for the interpretation of these Regulations; the implementation details shall be formulated by the Ministry of Finance. Article 16 These Regulations shall come into effect on October 1, 1988. Attachment: Table of Stamp Duty Items and Rates Attachment: Table of Stamp Duty Items and Rates Table of Tax Items and Rates Taxpayer Description 1 Purchase and sales contracts include supply, pre-purchase, procurement, purchase and sale combination and collaboration, adjustment, compensation, barter, etc. Contracts are subject to a discount of three ten thousandths of the purchase and sale amount. Huali Contractor 2 Processing and contracting contracts include processing, customization, repair, repair, printing, advertising, surveying and testing, etc. Contracts are denominated at 50,000% of the processing or contracting income Contractor 3 Construction project survey and design contracts include survey and design contracts The contractor shall be given a sticker of 5/10,000 of the fee charged. 4 The construction and installation project contract includes construction and installation projects. The contractor shall be given a sticker of 3/10,000 of the contract amount. 5. Property leasing contracts include leasing houses, ships, aircraft, motor vehicles, Machinery, appliances, equipment, etc. are decaled at one thousandth of the rental amount.

If the tax amount is less than one yuan, the contracting party will be decaled at the rate of one yuan. 6 Goods transportation contracts include civil aviation, railway transportation, maritime transportation, inland water transportation, road transport and combined transport contracts. The contracting party will be decaled at 0.05% of the transportation cost. If the document is used as a contract, the contracting party shall be decaled at the rate of 0.5%. Contract decal 7 Warehousing and custody contracts include warehousing and storage contracts, and decals are decaled at one thousandth of the warehousing and storage fee. If the contracting party's warehouse receipt or warehouse receipt is used as a contract, decal 8 is applied to the loan contract. Banks and other financial organizations and borrowers (excluding If the loan contract signed by the inter-bank lending company is decaled at a rate of 0.5% of the loan amount, and the contracting party's documents are used as contracts, a decal of 9% shall be applied to the contract. Property insurance contracts include property, liability, guarantee, credit, etc. Insurance contracts shall be decaled at a rate of 0.5% of the insured amount. If the contract-contracting document is used as a contract, it will be decaled 10. Technology contracts including technology development, transfer, consulting, service, etc. will be decaled 10-thousandths of the amount stated.