Ministry of Finance State Taxation Administration of The People's Republic of China

Notice on Individual Income Tax Policy of Individual Investors on Interest Income from Securities Trading Settlement Funds in the Securities Market

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Caishui [2008]140 No.

Written date: 2008- 10-26

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All provinces, autonomous regions, municipalities directly under the central government, the finance department (bureau), the local taxation bureau, the State Taxation Bureau of Tibet, Ningxia and Qinghai provinces (autonomous regions), and the Finance Bureau of Xinjiang Production and Construction Corps:

According to the relevant provisions of the Individual Income Tax Law of the People's Republic of China, with the approval of the State Council, the relevant individual income tax policies on the interest income of securities trading settlement funds obtained by individual investors in the securities market are hereby notified as follows:

From 2008 10/9, individual income tax will be temporarily exempted for the interest income of securities trading settlement funds obtained by individual investors in the securities market, that is, the interest income of individual investors in the securities market after 2008 10/9 (including 10) will be temporarily exempted from individual income tax.

Ministry of Finance State Taxation Administration of The People's Republic of China

Press release issued on October 26th, 2008