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	OFFICIAL REPLY OF THE STATE TAXATION ADMINISTRATION ON THE ISSUE OF PAYMENT OF STAMP DUTY ON OPERATIONAL FUNDS OF THE BRANCHES OF FOREIGN BANKS

	(Letter No. 104 [2002] of the State Taxation Administration promulgated on January 28, 2002)


SUBJECT : STAMP DUTY; OPERATIONAL FUNDS OF BRANCHES OF FOREIGN BANKS
ISSUING DEPARTMENT : STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 01/28/2002
IMPLEMENT DATE : 01/28/2002
LENGTH : 154 words
TEXT :

Regarding Request for Instruction on the Issue of Stamp Duty by the Branches of Foreign Banks (No. 46 [2001] of Tianjin Municipal Local Taxation Bureau), according to the relevant provisions in the Regulation of the People's Republic of China on the Administration of Foreign-Invested Financial Institutions, if a foreign bank intends to establish a branch within the territory of China, its headquarters abroad shall allocate the amount of "operational funds" stipulated, and the branch shall not set up the accounts of "paid-in capital" and "capital reserves". As for how the said branch of the foreign bank shall pay the stamp duty on the "operational funds" allocated by its headquarters abroad, according to Article 2 of the Interim Regulation of the People's Republic of China on Stamp Duty, the branch of a foreign bank shall calculate the stamp duty on the amount of the funds on the book of "operational funds" allocated by the headquarters.