The Ministry of Finance and the State Administration of Taxation issued a notice on the stamp tax policy related to corporate restructuring and the restructuring of public institutions.

On September 3, the Ministry of Finance and the State Administration of Taxation issued a public announcement regarding stamp duty policies related to the restructuring and reorganization of enterprises and the restructuring of public institutions. Stamp duty is exempted for property transfer documents related to the restructuring, merger, division, bankruptcy liquidation of enterprises, as well as property transfer documents related to the restructuring of public institutions. Stamp duty is also exempted for property transfer documents related to administrative adjustments of land use rights, ownership of buildings and structures, and equity made by county-level and above people's governments or their departments responsible for managing state assets, as well as for property transfer documents related to the internal transfer of land use rights, ownership of buildings and structures, and equity within the same investment entity. The public announcement covers various aspects of stamp duty policies related to the restructuring and reorganization of enterprises and public institutions, aimed at supporting these processes and stimulating innovation to promote high-quality economic and social development. The announcement specifies guidelines for stamp duty on business books, taxable contracts, and property transfer documents in the context of restructuring and reorganization. The announcement defines the scope of enterprise restructuring, including the transformation of non-corporate enterprises into limited liability companies or joint stock companies, as well as the restructuring of limited liability companies into joint stock companies. It also includes provisions for mergers, divisions, asset or equity contributions and transfers, and debt restructuring as part of corporate reorganization. The announcement further clarifies the criteria for determining continuity of investment entities and outlines the requirements for enterprises to qualify for stamp duty exemptions during the restructuring or reorganization process. The measures outlined in the announcement will be effective from October 1, 2024, to December 31, 2027, replacing the previous notification on stamp duty policies issued by the Ministry of Finance and the State Administration of Taxation. (Source: Ministry of Finance official website, translated by GMTEight; edited by Liu Jiayin)