Stamp duty is a tax on stock trading, and its reduction directly affects the transaction cost of investors. The following is a small collection of stamp duty halved or nearly 100 billion profits. Welcome to read and share. I hope you like it.
Stamp duty halved or profit nearly 100 billion
With the development of China's economy, the importance of capital market has become increasingly prominent. In order to enliven the market and boost investors' confidence, the Ministry of Finance and State Taxation Administration of The People's Republic of China issued an announcement on August 27th, and since August 28th, 2023, the stamp duty on securities transactions will be halved. The release of this great good news has undoubtedly injected new vitality into the volatile China stock market.
How to calculate the tax basis of stamp duty
(1) Contract or certificate with contractual nature shall be subject to the amount contained in the certificate.
(2) Business account books The account books in which funds are recorded shall be based on the paid-in capital and total capital reserve.
(3) The number of vouchers or account books shall be used as the tax basis for the photos of the property right certificate, industrial and commercial business license, patent certificate, etc., and various subsidiary account books of the enterprise.
Calculation of taxable amount of stamp duty
(1) The calculation formula of stamp duty payable for proportional tax rate certificate is:
Taxable amount = taxable amount of taxable documents × proportional tax rate
(2) The formula for calculating the taxable amount of stamp duty on fixed-rate certificates is:
Taxable amount = number of taxable documents × fixed tax rate
(3) The formula for calculating the taxable amount of account book stamp duty for recording funds in business account books is:
Taxable amount = (paid-in capital reserve) ×5
Other account books are posted according to each 5 yuan.
There are many kinds of taxes, one of which is stamp duty, which is a tax levied on contracts. In the relevant laws and regulations on stamp duty, it is clearly pointed out which contracts need to pay stamp duty and which do not. Taxpayers will know whether stamp duty should be paid according to their own situation, and at this time, they need to safeguard their rights and interests in time.
Purpose of stamp duty on stock transactions
Generally speaking, stamp duty on stock transactions has two purposes:
First, as a tax item of ordinary stamp duty, the stock trading behavior is levied.
Second, stamp duty is used as an alternative tax when it is difficult to collect income tax on stock transactions.
In order to encourage securities investors to hold stocks for a long time, foreign countries often impose different tax rates on stock buyers and sellers, that is, the seller's tax rate is higher, the buyer's tax rate is lower or exempt. China levies the same tax rate on both buyers and sellers of stocks.
What is the impact of the reduction of stamp duty?
1, reducing the transaction cost of investors. At present, the stamp duty rate of stock transactions is 1‰ of the transaction amount, which is charged when selling and not charged when buying. With the reduction of stamp duty, the transaction cost of stock investors will be reduced. For example, if an investor sells 100000 shares, the stamp duty payable when selling is100000 _ 0.1%=100000 yuan. If the stamp duty is reduced to 0.05%, only 10000000 _ 0 is needed when selling. The greater the transaction amount, the more significant the impact of stamp duty reduction.
2. Improve market activity. The reduction of stamp duty will reduce the transaction cost of investors to a certain extent. As retail transactions become more frequent, the market will become more active. On the other hand, reducing stamp duty will help brokers reduce their burdens and reduce the cost of securities transactions, thus promoting the stock market to rise. Especially for securities stocks, the reduction of stamp duty will make retail transactions in the market more frequent, increase the commission income of securities companies, and thus promote the rise of securities stocks, which is a good thing for the brokerage sector.
3. Improve the stock market system. Any system upgrade or adjustment is to improve the stock market system, such as trading system, dividend system and distribution system, which are all system upgrades. Stock stamp duty is not available in many mature international stock markets, such as the United States, Japan, Singapore and other countries. If the stamp duty on A-shares drops, it is also an upgrade of the system, which is a step closer to the abolition of stamp duty.