Company News

Financial Institutions Eligible for Stamp Duty Exemptions

Following the Chinese State Council’s call for providing more financial support to cash-strapped small enterprises under the country’s tightening monetary environment, the State Administration of Taxation and Ministry of Finance recently co-issued a new circular that will grant favorable tax treatment to financial institutions when they offer loans to small enterprises.

The “Circular on Stamp Duty Exemption on Lending Contracts between Financial Institutions and Micro and Small Sized Enterprises (MSEs) (caishui [2011] No.105),” released on October 17, stipulated that the loan contracts signed between financial institutions and MSEs will be exempt from stamp duties during the period between November 1, 2011 and October 31, 2014.

The Circular also clarified that the identification of aforesaid MSEs shall follow the standards listed in the “Circular on Standards for Small and Medium Sized Enterprises (SMEs) Classification (gongxinbulianqiye [2011] No.300),” which was co-issued by the Ministry of Industry and Information Technology, the National Bureau of Statistics, the National Development and Reform Commission, and the Ministry of Finance in June this year.

Circular No.300, which classifies SMEs as either “micro,” “small,” or “medium,” defined “micro” and “small” sized enterprises across different sectors as follows:

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China. For further information, please contact info@dezshira.com.

Related Reading

State Council Announces Financial Measures to Help SMEs

China Issues Classification Standards for SMEs

Preferential Tax Policy for Small-Scale and Low-Profit Enterprises to Continue

China to Redefine SMEs Giving Small Firms Wider Access to Gov’t Funding

China to Establish RMB3 Billion Fund for SMEs

China to Help SMEs Cope with Slowdown


To learn more about how we can support you, contact one of our local experts.

We provide professional services tailored to Asia´s business environment across the full business cycle.

Talk to experts