Ministry of Finance and State Administration of Taxation, Tax Policy Issues Relevant to Pilot Reform Projects Regarding the Separation of Equity Ownership and Trading Rights Circular

Issued: June 13 2005
Effective: as of date of issue

Main contents: The Circular temporarily exempts:
1. stamp tax on equity transfer arising from payment of consideration to tradable shareholders by non-tradable shareholders in the course of the reform regarding the separation of equity ownership and trading rights; and
2. enterprise income tax and individual income tax payable by tradable shareholders on income such as shares and cash paid by non-tradable shareholders in the reform regarding the separation of equity ownership and trading rights to tradable shareholders by way of paying.