The Ministry of Finance and State Taxation Administration, on 16 January 2023, announced the extension of the following preferential individual income tax policies for one year, until 31 December 2023:
- Preferential tax treatment of employee’s equity income from participation in equity plans of public companies
- Temporary exemption from individual income tax of gains from investments by mainland individual investors through the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect and from the trading of Hong Kong fund units under the mutual recognition of funds
Source: Announcement on Continuing to Implement Preferential Individual Income Tax Policies
The Announcement is a new policy that is added to the list of existing favorable tax policies that have been extended through the end of 2023. These policies include the policy for foreign nationals’ benefits and the one for the annual one-time bonus of both foreign and Chinese individuals.
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