Involving stamp duty, personal income tax benefits... heavyweight! The Ministry of Finance, State Administration of Taxation, and China Securities Regulatory Commission latest release innovation | Investors | China Securities Regulatory Commission

Release time:Apr 15, 2024 06:28 AM

The capital market is welcoming favorable policies again.

On August 22, the official website of the Ministry of Finance issued six consecutive announcements, stating that the Ministry of Finance, the State Administration of Taxation, the China Securities Regulatory Commission and other departments have optimized and continued a package of tax policies to support innovative enterprises in the domestic issuance of depositary receipts, the commodity futures market, venture capital partners, and the Shanghai Shenzhen Hong Kong Stock Connect.

The relevant tax incentives involve personal income tax, corporate income tax, value-added tax, stamp duty, etc., mainly to continue the policies that have been introduced. In addition, when transferring innovative enterprise CDRs on the Shanghai Stock Exchange and Shenzhen Stock Exchange, the transferor shall pay securities transaction stamp duty at a rate of 1 ‰ based on the actual transaction amount.

The relevant person in charge of the Ministry of Finance recently stated that in the next step, the Ministry of Finance will increase its macroeconomic policy regulation efforts, promote the early implementation and effectiveness of various financial and tax policies, and continue, optimize, improve and implement tax reduction and fee reduction policies.

Optimize and continue the CDR tax reduction support for innovative enterprises

In order to continue supporting the implementation of the innovation driven development strategy, the Ministry of Finance has issued a notice on the relevant tax policies for the pilot phase of domestic issuance of depositary receipts by innovative enterprises, which specifies that from September 21, 2023 to December 31, 2025, tax reduction and exemption will be provided to investors for the price difference income obtained from the transfer of innovative enterprise CDRs and the dividend income obtained from holding innovative enterprise CDRs.

For individual investors, the price difference income obtained from the transfer of innovative enterprise CDR is temporarily exempt from personal income tax; The price difference income obtained from the transfer of innovative enterprise CDR is temporarily exempt from value-added tax; It holds the dividend income obtained from innovative enterprise CDR and implements a differentiated personal income tax policy for dividend income.

For corporate investors, the income from the price difference obtained from transferring innovative enterprise CDRs and the dividend income obtained from holding innovative enterprise CDRs shall be exempted from corporate income tax in accordance with the policy provisions for the income from the price difference obtained from transferring stocks and the dividend income obtained from holding stocks.

For public securities investment funds, the difference income obtained from the transfer of innovative enterprise CDR and the dividend income obtained from holding innovative enterprise CDR shall not be subject to corporate income tax temporarily in accordance with the tax policies of public securities investment funds; The price difference income obtained from the transfer of innovative enterprise CDR during the operation of public securities investment fund managers is temporarily exempt from value-added tax.

For qualified foreign institutional investors and RMB qualified foreign institutional investors, the difference income obtained from the transfer of innovative enterprise CDR and the dividend income obtained from holding innovative enterprise CDR shall be regarded as the equity asset transfer income and dividend income obtained from the transfer or holding of the underlying stocks for issuing innovative enterprise CDR, and shall be exempt from corporate income tax; The price difference income obtained from entrusting domestic companies to transfer innovative enterprise CDRs is temporarily exempt from value-added tax.

For the price difference income obtained from the transfer of innovative enterprise CDR by unit investors, value-added tax shall be levied and exempted in accordance with the financial commodity transfer policy.

In addition, when transferring innovative enterprise CDRs on the Shanghai Stock Exchange and Shenzhen Stock Exchange, the transferor shall pay securities transaction stamp duty at a rate of 1 ‰ based on the actual transaction amount.

Optimize and continue the support of tax reduction and exemption for the opening up of the commodity futures market to the outside world

To support the opening up of the commodity futures market, the Ministry of Finance and the State Administration of Taxation have issued a notice on value-added tax policies related to supporting the opening up of the commodity futures market. The Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission have issued a notice on continuing to implement the personal income tax policy to support the opening up of futures markets for crude oil and other goods to the outside world. The relevant policies of the two announcements will be implemented until December 31, 2027.

The Announcement on Supporting the Value Added Tax Policies for the Opening up of the Commodity Futures Market proposes that the bonded delivery business of commodity futures varieties approved by the State Council for opening up to the outside world is temporarily exempt from value-added tax. If the goods actually delivered in futures trading are imported or exported, the current import and export tax policies for goods shall be uniformly implemented. The physical delivery of futures for non bonded goods shall be carried out in accordance with relevant regulations.

The Announcement on Continuing the Implementation of the Personal Income Tax Policy to Support the Opening up of Futures Markets for Crude Oil and Other Goods proposes that the income obtained by foreign individual investors from investing in domestic crude oil and other futures products approved for opening up by the State Council in China is temporarily exempt from personal income tax.

Continuation of equity incentive and personal income tax incentives for listed companies

To continue supporting the innovation and development of enterprises, the Ministry of Finance and the State Administration of Taxation have issued a notice on the continuation of the implementation of personal income tax policies related to equity incentives for listed companies, which will be implemented until December 31, 2027.

The announcement proposes that individual residents who obtain equity incentives such as stock options, stock appreciation rights, restricted stocks, and equity rewards, and meet the relevant conditions of relevant regulations, will not be included in the comprehensive income for the current year, and will be subject to the comprehensive income tax rate table separately for full amount calculation and taxation. The calculation formula is: taxable amount=equity incentive income x applicable tax rate - quick calculation deduction amount

Provide personal income tax incentives for individual partners of venture capital enterprises

To continue supporting the development of venture capital enterprises, the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the China Securities Regulatory Commission have issued a notice on the continued implementation of individual partner income tax policies for venture capital enterprises, providing preferential support for individual income tax. The relevant policies will be implemented until December 31, 2027.

The announcement proposes that venture capital enterprises can choose one of two methods: accounting by a single investment fund or accounting by the annual income of the venture capital enterprise as a whole, and calculate the personal income tax payable for the income of their individual partners from the venture capital enterprise.

Among them, if a venture capital enterprise chooses to account for a single investment fund, its individual partners shall pay personal income tax at a rate of 20% on the equity transfer income and dividend income that should be distributed from the fund.

If a venture capital enterprise chooses to calculate its annual income as a whole, its individual partners shall pay personal income tax on the income obtained by the venture capital enterprise according to the "operating income" item and a progressive tax rate of 5% -35%.

The announcement states that venture capital enterprises that choose to account for a single investment fund or the overall annual income of the venture capital enterprise cannot be changed within three years.

Continuing the Shanghai Hong Kong Stock Connect, Shenzhen Hong Kong Stock Connect, and mutual recognition of individual income tax benefits for funds

The Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission have issued a notice on the continuation of the implementation of the Shanghai Hong Kong, Shenzhen Hong Kong stock market trading interconnection mechanism and personal income tax policies related to mutual recognition of funds between mainland and Hong Kong. The relevant policies will be implemented until December 31, 2027.

The announcement proposes that individual mainland investors who invest in Hong Kong Stock Exchange listed stocks through the Shanghai Hong Kong Stock Connect and Shenzhen Hong Kong Stock Connect, as well as those who invest in Hong Kong fund shares through mutual fund recognition, will continue to be temporarily exempt from personal income tax.

Two women were stabbed to death and reported to have committed a crime 4 days before the follow-up visit for schizophrenia. Suspect of a bloody murder case in a Hong Kong shopping mall appeared in court today. Male | Last Friday | Murder case

According to Hong Kong's Wen Wei Po, a bloody knife stabbing case occurred at Hollywood Square in Diamond Hill last Friday. The police arrested a 39 year old man on suspicion of stabbing two young women, one of whom was stabbed over 30 times. The suspect appeared in the Kwun Tong Magistrates Court this morning. The police at the Kwun Tong Magistrate's Court temporarily charged the suspect with two counts of murder last Sunday. The suspect appeared in court this morning at the Kwun Tong Magistrate's Court. Acting Chief Magistrate Zheng Jihang, after listening to the opinions of both the prosecution and defense, decided to postpone the hearing for two weeks until 9:30 am on June 19th, waiting for two psychiatric expert reports to be obtained. The defense did not object. Zheng Jihang approved the application, and the defendant needs to be temporarily detained at Xiaolan Mental Hospital. When the suspect appeared in court, he wore black framed glasses, a light gray shirt, and camouflage green shorts, and was able to answer the judge's questions normally. accordingly

Currently, the highly anticipated summer harvest work in Henan has shifted its focus to the northern region of Henan. According to the Henan Daily client, on June 4th, Lou Yangsheng, Secretary of the Henan Provincial Party Committee, presided over a special video scheduling meeting on the "Three Summers" work in the province, listened to the situation report, analyzed and judged the situation, and arranged and deployed the next steps of work. Governor Wang Kai made specific arrangements. On the evening of May 31, 2023, in Xiafutou Village, Xuliang Town, Boai County, Jiaozuo, Henan Province, villagers braved light rain in the wheat fields to harvest wheat. Visual China Map Lou Yangsheng pointed out that the current summer harvest battle in the province has entered the decisive stage. Doing a good job in summer harvest in northern Henan Province is related to the summer grain yield and seed safety. We should focus on seizing opportunities and make every effort to organize the wheat harvesting work in the northern Henan region, minimize losses, and protect the interests of farmers to the greatest extent possible. Accurate forecasting is essential

Xinhua All Media+| Welcome home! What innovative technologies are protecting the return journey of Shenzhou 15? Spaceship | Shenzhou | Technology

On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Astronauts Fei Junlong, Deng Qingming, and Zhang Lu all safely and smoothly exited the spacecraft, and the Shenzhou-15 manned flight mission was a complete success. What innovative technologies are there to safeguard the return journey of Shenzhou 15 in this mission? On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Xinhua News Agency reporter Lian Zhen photographed that "the sky and the ground" ensure the high-precision return of spacecraft. For the Shenzhou series spacecraft, the return and re-entry GNC technology is directly related to the life safety of astronauts. Taking the success of this return mission as a symbol, China has comprehensively upgraded its GNC system since the Shenzhou-12 manned spacecraft, which features autonomous rapid rendezvous and docking, autonomous adaptive prediction and re-entry return guidance, and has completed a comprehensive update and replacement

The Chinese naval fleet has arrived! Assembly | Navy | Chinese Fleet

At noon today, a Chinese naval fleet consisting of Zhanjiang and Xuchang ships arrived at the assembly area of the "Comodo-2023" multinational maritime joint exercise. It is understood that the assembly anchorage for this exercise is 3 nautical miles long and 1.5 nautical miles wide, capable of anchoring up to 50 ships. Naval vessels from various countries participating in the exercise will also arrive at the anchorage today to complete the assembly of the "Komodo 2023" multinational maritime joint exercise, which is held every two years by the Indonesian Navy. This year is already the fourth edition of the exercise. The exercise will be held from June 5th to 8th in the city of Jakarta, South Sulawesi Province, Indonesia, including the port and sea phases. In the coming days, participating navies from various countries will participate in ship reading style search and rescue exercises, maritime interception and damage management exercises, aerial exercises, and other course objectives exercises

New comment: Donkey like "morale" limit pulls US debt "bomb" fuse hard to dismantle US | debt | morale

On the evening of June 1st, the US Senate passed a bill on the federal government's debt ceiling and budget, and the flame of the US debt bomb was temporarily extinguished at the last moment. The two parties in the United States have staged an extreme tug of war over the US debt bomb. Some experts believe that the US debt crisis is the result of the reckless politics promoted by the US dollar hegemony, and the underlying cause of this crisis is the highly polarized political system of the US. Since the end of World War II, the US Congress has adjusted the debt ceiling more than a hundred times. The recurring debt crisis will not only have a catastrophic impact on the US economy and people's livelihoods, but also continuously erode the value of US dollar assets such as government credit and US bonds, bringing significant and far-reaching impacts to the global economic landscape. 【

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