Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission, Circular on the Issue of Provisionally Exempting the Proceeds Derived in China by QFIIs and RQFIIs from the Transfer of Stocks and Other Such Equity Investment Assets from Enterprise Income Tax

财政部、国家税务总局、中国证券监督管理委员会关于QFII和RQFII取得中国境内的股票等权益性投资资产转让所得暂免征收企业所得税问题的通知

December 18, 2014 | BY

clpstaff &clp articles &

QFIIs exempted from income tax related to Shanghai-Hong Kong Stock Connect.

Clp Reference: 3230/14.10.31 Promulgated: 2014-10-31

Issued: October 31 2014

Applicability: This Circular shall apply to qualified foreign institutional investors (QFIIs) and renminbi qualified foreign institutional investor (RQFIIs) that do not have an establishment or premises in China or, although having an establishment or premises in China, the aforementioned proceeds derived by them have no actual connection with such establishment or premises.

Main contents: The proceeds derived in China by QFIIs and RQFIIs from the transfer of stocks and other such equity investment assets shall, from November 17 2014, provisionally be exempt from enterprise income tax.

Related legislation: Circular on Tax Policies Relevant to the Pilot Project for the Mechanisms to Provide Mutual Trading Access Between the Shanghai and Hong Kong Stock Markets

clp reference:3230/14.10.31(1)promulgated:2014-10-31

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