China Law Online Database : novexcn.com

You are using Guest Account

Subscribe To This Law Only

Subscribe To All Law Contents

Print This Page

Back




	SUPPLEMENTARY CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE POLICY OF INDIVIDUAL INCOME TAXES (DIVIDENDS)

	(No. 107 [2005] of the Ministry of Finance, the State Administration of Taxation promulgated on June 24, 2005)


SUBJECT : INDIVIDUAL INCOME TAXES; DIVIDENDS
ISSUING DEPARTMENT : THE MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA, STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 06/24/2005
IMPLEMENT DATE : 06/24/2005
LENGTH : 242 words
TEXT :

In order to further refine the taxation policies of dividends and intensify tax collection, we hereby notify the issue regarding the implementation of the exemption or reduction policies of individual income taxes concerning dividends as follows:

I. For any dividend income actually allotted by a listed company after document No. 102 [2005] of the Ministry of Finance is distributed (including the very day of distribution), the reduction policies of individual income taxes shall be implemented according to document No. 102[2005] of the Ministry of Finance.

Those listed companies that satisfy the aforesaid provisions and have paid individual income taxes in light of the full amount of dividends, may refund the taxes excessively deducted to individual investors according to the tax-reduction policies prescribed by document No. 102 [2005] of the Ministry of Finance; where the tax amount has been turned over into the state treasury, it shall be refunded according to the prescribed procedure by the taxation and public finance departments and shall be returned to individual investors by withholding agents.

II. For the dividend incomes of securities investment funds generated from the dividend allocation of a listed company, while the withholding agent withholds the individual income taxes, the taxable income shall be calculated at a reduced rate of 50%.

III. The term "listed companies" mentioned in document No. 102 [2005] of the Ministry of Finance refers to the listed companies that are listed in the Shanghai Stock Exchange or Shenzhen Stock Exchange.