According to Article 1 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Stamp Duty on Capital Account Book (Guo Shui Fa [1994] No.25), after the implementation of the "two regulations", the tax basis of stamp duty on capital account book is changed to paid-in capital and total capital reserve. Article 2 stipulates that if the total of "paid-in capital" and "capital reserve" of an enterprise is greater than the original applied capital, the increased subsidy will be printed. In addition, Article 24 of the Detailed Rules for the Implementation of the Provisional Regulations on Stamp Duty in People's Republic of China (PRC) stipulates that those who affix more stamps may not apply for tax refund or deduction.
According to the above provisions, stamp duty on capital account books should be calculated and paid according to the increase of "paid-in capital" and "capital reserve". The increase of capital reserve is compared with the amount of credit.