Direct answer: Stamp duty in China applies to written documents that create or record rights, obligations, property transfers or capital. For a WFOE, common taxable documents include sales and purchase contracts, technology contracts, lease contracts, and capital-account books. Rates commonly range from 0.03% to 0.1%. Returns are normally filed monthly or quarterly.
1. Why stamp duty matters for foreign-invested enterprises
Stamp duty is a small tax in absolute terms, but it is easy to overlook. Many WFOEs focus on corporate income tax, VAT and payroll and then discover during a tax review that several years of contracts were never stamped. The tax is levied on the document itself, not on the accounting profit, so a missing stamp can be traced back to a specific contract and assessed with late-payment interest.
Foreign companies are exposed because their contracts are often drafted in English or bilingual form and executed through electronic signature platforms. The language and signature method do not remove the stamp duty obligation if the contract falls within the taxable categories.
2. Which documents are usually subject to stamp duty
The scope covers purchase and sale contracts, property leases, loan contracts, property-rights transfer documents, technology contracts, and certain account books and certificates. The following table shows common document types and rates.
| Document type | Common rate or basis | Notes for WFOEs |
|---|---|---|
| Sales and purchase contracts | 0.03% of contract value | Includes written purchase orders and supply agreements with local suppliers. |
| Technology contracts | 0.03% of contract value | Includes software licensing, technical service and R&D agreements. |
| Lease contracts | 0.1% of total rent | Office, warehouse and vehicle leases are commonly caught. |
| Transport and storage contracts | 0.03% to 0.1% | Depends on contract type; logistics-heavy businesses should review each agreement. |
| Loan contracts | 0.005% of loan amount | Covers intercompany and bank loan agreements in many cases. |
| Property-rights transfer documents | 0.05% of transaction value | Applies to equity transfers, trademark transfers and similar rights. |
| Capital-account books | 0.05% of paid-in capital and capital reserve | Reduced from the older rate; applied when capital is recorded in the books. |
| Other account books | Fixed amount per book | Most ordinary account books are taxed at a small fixed amount per piece. |
Note: The rates above reflect the rules commonly applied in 2026. Local tax bureaus may issue specific guidance or temporary reductions, and the classification of a contract affects the rate. Always confirm the exact rate with the tax bureau that has jurisdiction over your company.
3. How stamp duty is calculated
For most contracts, the tax base is the amount stated in the contract. If VAT is not shown separately, the total value is usually the base; if VAT is shown separately, it is generally excluded, depending on local practice.
4. Filing deadlines and payment process
Stamp duty can be filed and paid on a monthly, quarterly or per-transaction basis depending on the company's tax period and local rules. The obligation arises when the document is executed or received. Most WFOEs file through the electronic tax bureau system.
Electronic contracts executed through licensed electronic signature platforms are treated the same as paper contracts for stamp duty purposes. The key is to maintain a contract register that records the counterparty, contract type, value, execution date and tax period, so that the tax can be calculated consistently.
5. Common mistakes foreign companies make
- English-only contracts: An English-language contract used in China is still subject to stamp duty if it falls within a taxable category.
- Electronic signatures: E-contracts are not exempt. The execution date and contract value must be recorded for tax purposes.
- Supplementary agreements: An amendment that increases the contract value is often missed, creating an underpayment.
- Intercompany contracts: Loans, service agreements and IP licences between related parties are still taxable.
- Capital increases: Recording additional paid-in capital without updating the stamp duty on capital-account books can lead to a shortfall.
6. Where Caigeek fits
Caigeek helps foreign companies build a contract register and stamp duty filing process that matches the actual contract flow. Caigeek does not replace a tax agent; it organises data so filings are complete and consistent with accounting records.
Frequently asked questions
Do foreign companies in China have to pay stamp duty on English-language contracts?
Yes. The language of the contract does not determine taxability. If a contract falls within the taxable categories under Chinese stamp duty rules, it is subject to stamp duty regardless of language.
Are electronic contracts exempt from stamp duty in China?
No. Electronic contracts executed through licensed platforms are treated the same as paper contracts for stamp duty purposes.
What is the stamp duty rate for a sales contract in China?
Sales and purchase contracts are commonly taxed at 0.03% of the contract value. The base depends on whether VAT is shown separately.
Is stamp duty on capital-account books a one-time charge?
It is normally payable when the capital is recorded and when subsequent capital increases are recorded. Some account books are taxed at a fixed amount per book.
Can stamp duty be refunded if a contract is cancelled?
Generally no. Once the document is executed, the stamp duty is due even if the underlying transaction is later cancelled or not performed.
What happens if a company forgets to file stamp duty?
The tax bureau can assess the unpaid tax, charge late-payment interest and impose penalties. Historical underpayments can accumulate.
Should a WFOE handle stamp duty itself or outsource it?
A WFOE can handle it in-house if it has a complete contract register and a clear filing calendar. Many companies outsource tracking and calculation to a finance operations provider and rely on a tax agent for final filing.
Important notes
This article provides general procurement and finance-management information for foreign companies operating in China. It is not accounting, tax, legal, audit or investment advice for a specific company. Rules and deadlines should be confirmed with the local tax bureau, market regulation department and a licensed professional adviser.