Issued: November 16 2012
Effective: January 1 2013
Main contents: With respect to listed company stocks obtained on the public offering and transfer market, if the individual holds the shares for one month or less, the entire amount of the income derived from dividends and bonuses shall be counted as part of his/her taxable income; if he/she holds the shares for more than one month but less than or equal to one year, provisionally, a reduced percentage of 50% of the amount shall be counted as part of his/her taxable income; or if he/she holds the shares for more than one year, provisionally, a reduced percentage of 25% of the amount shall be counted as part of his/her taxable income.
Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission, Circular on Issues Relevant to the Implementation of a Policy of Graduated Individual Income Tax on Dividends and Bonuses from Listed Companies
财政部、国家税务局、中国证券监督管理委员会关于实施上市公司股息红利差别化个人所得税政策有关问题的通知
The dividend tax reduced to encourage investors to hold shares for the long term.
By
CLP Temp