China Tax Agency Announces Tax Policy on Transfers of Specified State-Owned Equity, Cash Income

The Chinese State Administration of Taxation Aug. 27 issued Notice No. 26, announcing the tax policy on transfers of state-owned equity and cash income from social security fund management. The notice includes that: 1) a VAT exemption applies to interest and similar income, and financial product transfer income, from loan services rendered in the investment process using the transferred equity and cash income; 2) income from the transferred equity and cash income is nontaxable for corporate income tax purposes; 3) a stamp duty exemption applies for the receiving entity, as defined, on the transfers of equity in unlisted companies; 4) ...