Announcement of the State Administration of Taxation Ministry of Finance China Securities Regulatory Commission on Matters Relating to the Further Improvement of Individual Income Tax on Individuals Transferring Restricted Shares of Listed Companies

State Administration of Taxation Ministry of Finance China Securities Regulatory Commission Announcement No. 14 of 2024

In order to promote the construction of a national unified big market and better play the role of tax function, according to the relevant provisions of the Individual Income Tax Law of the People's Republic of China and its implementing regulations, the following announcement is made on the matters relating to the levy and administration of individual income tax on the income derived from the transfer of restricted shares of listed companies by individuals:

I. When an individual pays individual income tax on the income from transfer of restricted shares of listed companies, the place of taxation shall be the place where the listed company issuing the restricted shares is located.

Second, when individual shareholders open accounts with securities institutions to withhold and pay individual income tax on behalf of the income from the transfer of restricted shares, they can prioritize the declaration remotely through the website of the Natural Person Electronic Taxation Bureau and the withholding client, and they can also declare in the competent tax authorities in the place where the securities institutions are located, and the tax will be settled in the place where the listed companies are located.

If the taxpayers need to declare liquidation or tax on their own, they can prioritize to process the declaration remotely through the website of Natural Person Electronic Taxation Bureau, or go to the competent tax authorities where the listed company is located to process the declaration.

The competent tax authorities where the listed company is located are responsible for the collection and management of individual income tax on income from the transfer of restricted shares, and the competent tax authorities where the securities institutions are located shall be coordinated and managed. The tax authorities continue to optimize tax services and enhance the convenience of securities institutions and taxpayers in filing tax returns.

V. Matters related to the collection and management services of individual income tax on the transfer of original shares of companies listed in the National Small and Medium-sized Enterprise Stock Transfer System and listed companies in the Beijing Stock Exchange shall be in accordance with the provisions of this Announcement.

Fifth, this announcement shall come into force on the date of its issuance, and the provisions of the Circular of the Ministry of Finance, the State Administration of Taxation and the Securities and Futures Commission on the Issues Relating to Individual Income Tax on Income from the Transfer of Restricted Shares of Listed Companies (Cai Shui [2009] No. 167), etc., which are inconsistent with this announcement, shall be implemented in accordance with this announcement.

This announcement is hereby promulgated.

State Administration of Taxation

Ministry of Finance

China Securities Regulatory Commission

December 27, 2024