Announcement on the Extension of Relevant Preferential Individual Income Tax Policies
Announcement of the Ministry of Finance and the State Taxation Administration [2023] No.2
January 16, 2023
To support innovation and development of businesses in China and the opening of the capital markets to the outside world, the following preferential individual income tax (“IIT”) policies are announced:
I. The policy for the separate taxation of equity incentives offered by listed companies stated in the Announcement of the Ministry of Finance and the State Taxation Administration on the Extension of the Preferential Individual Income Tax Policies Including the Policy for One-Off Annual Bonus Payments (Announcement of the Ministry of Finance and the State Taxation Administration [2021] No. 42) shall continue to be in effect from January 1, 2023 to December 31, 2023.
2. The preferential IIT policies stated in the Announcement of the Ministry of Finance, the State Taxation Administration and the China Securities Regulatory Commission on Renewing the Individual Income Tax Policies for Transactions in the Shanghai and Hong Kong Stock Markets or the Shenzhen and Hong Kong Stock Markets and for the Mutual Recognition of Funds between Mainland China and Hong Kong (Announcement of the State Taxation Administration and the China Securities Regulatory Commission [2019] No.93) shall continue to be in effect from January 1, 2023 to December 31, 2023.
This Announcement is hereby given.
