Announcement on Issues Concerning the Application of Tax Policies for the Inclusion of Exchange Trad2022-06-30 17:34:14
Announcement on Issues Concerning the Application of Tax Policies for the Inclusion of Exchange Traded Fund in the Mainland-Hong Kong Stock Connect Mechanism
Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission [2022] No. 24
June 30, 2022
The issues concerning the application of relevant tax policies for the inclusion of exchange traded fund (ETF) in the Mainland-Hong Kong Stock Connect Mechanism are hereby clarified as below:
I. After an ETF is included in the Mainland-Hong Kong Stock Connect Mechanism, relevant existing tax policies mutually recognized by the Mainland and Hong Kong shall be applicable. Specifically, the Circular of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission on Tax Policies Concerning the Mainland-Hong Kong Mutual Recognition of Funds (Cai Shui [2015] No. 125), the Circular of the Ministry of Finance and the State Taxation Administration on Comprehensively Promoting the Pilot Program of the Collection of Value-added Tax in Lieu of Business Tax (Cai Shui [2016] No. 36), the Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission on Renewing the Individual Income Tax Policy for the Connectivity Mechanism for Transactions in the Shanghai and Hong Kong Stock Markets and in the Shenzhen and Hong Kong Stock Markets and for the Mutual Recognition of Funds between the Mainland China and Hong Kong (Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission [2019] No. 93), and other relevant regulations shall be followed.
II. China Securities Depository and Clearing Corporation Limited shall be responsible for withholding the individual income tax of Mainland investors gained from the distribution of Hong Kong fund.
This Announcement is hereby given.
I. After an ETF is included in the Mainland-Hong Kong Stock Connect Mechanism, relevant existing tax policies mutually recognized by the Mainland and Hong Kong shall be applicable. Specifically, the Circular of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission on Tax Policies Concerning the Mainland-Hong Kong Mutual Recognition of Funds (Cai Shui [2015] No. 125), the Circular of the Ministry of Finance and the State Taxation Administration on Comprehensively Promoting the Pilot Program of the Collection of Value-added Tax in Lieu of Business Tax (Cai Shui [2016] No. 36), the Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission on Renewing the Individual Income Tax Policy for the Connectivity Mechanism for Transactions in the Shanghai and Hong Kong Stock Markets and in the Shenzhen and Hong Kong Stock Markets and for the Mutual Recognition of Funds between the Mainland China and Hong Kong (Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission [2019] No. 93), and other relevant regulations shall be followed.
II. China Securities Depository and Clearing Corporation Limited shall be responsible for withholding the individual income tax of Mainland investors gained from the distribution of Hong Kong fund.
This Announcement is hereby given.
