Circular on Tax Policies concerning the Pilot Mechanism of the Shenzhen-Hong Kong Stock Connect
Circular on Tax Policies concerning the Pilot Mechanism of the Shenzhen-Hong Kong Stock Connect
Circular on Tax Policies concerning the Pilot Mechanism of the Shenzhen-Hong Kong Stock Connect
Cai Shui [2016] No.127
November 5, 2016
Finance departments (bureaus), offices of the State Taxation Administration and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, and the Finance Bureau of Xinjiang Production and Construction Corps, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited,
Upon approval by the State Council, tax policies concerning the pilot mechanism of the Shenzhen-Hong Kong stock connect (the "Shenzhen-Hong Kong Stock Connect") are hereby defined as below:
I. Income Tax for Investments in Stocks Listed on the Stock Exchange of Hong Kong Limited ("SEHK") by Mainland Investors through the Shenzhen-Hong Kong Stock Connect
1. Tax on gains derived from the price difference by mainland individual investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect.
As for gains derived from the price difference by mainland individual investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect, such investors will be temporarily exempt from individual income tax from December 5, 2016 to December 4, 2019.
2. Tax on gains derived from the price difference by mainland enterprise investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect.
Gains derived from the price difference by mainland enterprise investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect will be included in their total revenues and be subject to enterprise income tax according to the law.
3.
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Cai Shui [2016] No.127
November 5, 2016
Finance departments (bureaus), offices of the State Taxation Administration and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, and the Finance Bureau of Xinjiang Production and Construction Corps, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited,
Upon approval by the State Council, tax policies concerning the pilot mechanism of the Shenzhen-Hong Kong stock connect (the "Shenzhen-Hong Kong Stock Connect") are hereby defined as below:
I. Income Tax for Investments in Stocks Listed on the Stock Exchange of Hong Kong Limited ("SEHK") by Mainland Investors through the Shenzhen-Hong Kong Stock Connect
1. Tax on gains derived from the price difference by mainland individual investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect.
As for gains derived from the price difference by mainland individual investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect, such investors will be temporarily exempt from individual income tax from December 5, 2016 to December 4, 2019.
2. Tax on gains derived from the price difference by mainland enterprise investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect.
Gains derived from the price difference by mainland enterprise investors who transfer their investments in stocks listed on the SEHK through the Shenzhen-Hong Kong Stock Connect will be included in their total revenues and be subject to enterprise income tax according to the law.
3.
......