Multiple tax preferential policies have been introduced, providing comprehensive and multi-level support for the sustainable and healthy development of the capital market
CCTV News: On August 22, the Ministry of Finance and the State Administration of Taxation announced a batch of tax preferential policies that are conducive to the sustainable and healthy development of the capital market. The relevant policies will be extended up to the end of 2027.
The tax preferential policies announced this time include six aspects: the transfer price difference income obtained by mainland individual investors through the Shanghai Hong Kong Stock Connect, Shenzhen Hong Kong Stock Connect, and investment in stocks listed on the Hong Kong Stock Exchange; the income obtained by overseas individual investors from investing in approved futures products of crude oil and other goods in China that have been opened to the public, temporarily exempt from personal income tax.
It is understood that the vast majority of these preferential policies will continue until the end of 2027. A long time cycle will be more conducive to stabilizing market expectations, enhancing investor confidence, and promoting the healthy development of the capital market and the recovery of macroeconomic growth.
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Promote high-level opening-up of the capital market to the outside world
Experts say that the tax preferential policies released this time not only benefit individual investors and investment institutions, but also an important measure to expand the high-level opening of the capital market.
Specifically, in order to support the opening up of the capital market to the outside world, individual mainland investors are temporarily exempt from personal income tax on the transfer price difference income obtained from investing in stocks listed on the Hong Kong Stock Exchange through the Shanghai Hong Kong Stock Connect and the Shenzhen Hong Kong Stock Connect, as well as the transfer price difference income obtained from buying and selling Hong Kong fund shares through mutual fund recognition.
![Multiple tax preferential policies have been introduced, providing comprehensive and multi-level support for the sustainable and healthy development of the capital market](https://a5qu.com/upload/images/6cfd0ce7a581a94c95152660bf8de635.jpg)
Not only focusing on investors, this policy also includes policies aimed at opening up the commodity futures market to the outside world.
Policy oriented policies clearly encourage long-term investment
Experts say that among the package of tax and fee preferential policies announced this time, one item worth paying attention to is the implementation of differentiated individual income tax policies, indicating a clear policy orientation and encouraging long-term investment.
![Multiple tax preferential policies have been introduced, providing comprehensive and multi-level support for the sustainable and healthy development of the capital market](https://a5qu.com/upload/images/44386ee0b508e0b32b333d886aedbd1d.jpg)
According to the announcement, a differentiated personal income tax policy will be implemented on the dividend income obtained by individual investors holding domestic depositary receipts issued by innovative enterprises.
How do you understand? Simply put, the domestic issuance of depositary receipts by innovative enterprises refers to investment certificates issued by overseas listed companies, where some of the already issued and listed stocks are entrusted to local custodian banks for issuance by domestic depositary banks and listed on domestic A-shares for domestic investors to buy and sell, thereby achieving cross regional trading of stocks. Individual investors obtain dividends through holding, and the tax collection standards vary depending on the investment time.
Strong targeted support for enterprise innovation and development
![Multiple tax preferential policies have been introduced, providing comprehensive and multi-level support for the sustainable and healthy development of the capital market](https://a5qu.com/upload/images/9bc3f8dbb6b34e0a096a27d5d47c6295.jpg)
Among the tax policies announced this time, there is a preferential policy for personal income tax. Experts analyze that adjusting the personal income tax collection method is conducive to supporting enterprises to better retain talents and achieve innovative development.
According to the announcement, for taxpayers who obtain equity incentives for listed companies that meet relevant conditions, they will not be included in comprehensive income and will be subject to individual income tax calculation and payment separately based on the comprehensive income tax rate table. This policy will continue to be implemented until the end of 2027.
Moreover, the policy announced this time also stipulates that venture capital enterprises can pay personal income tax on the income of their individual partners through a two choice approach. Experts believe that this regulation will further alleviate the tax burden on taxpayers, thereby stimulating the sustainable and healthy development of venture capital enterprises.
![Multiple tax preferential policies have been introduced, providing comprehensive and multi-level support for the sustainable and healthy development of the capital market](https://a5qu.com/upload/images/54e7831cbd338563ddf72fa65a93fd3f.jpg)