Three Ministries Including Finance Ministry: Regulating Individual Income Tax Policy on Transfers of Restricted Shares of Listed Companies

Income derived by individuals from transferring restricted shares of listed companies shall be subject to individual income tax at a rate of 20% under the category of "income from property transfers." Where the tax payable calculated by the taxpayer based on the actual transfer income and actual cost of the restricted shares exceeds the tax amount already withheld by the securities institution, or is less than the withheld amount and a tax refund is applied for, the taxpayer shall, before June 30 of the year following the transfer of the restricted shares, provide the competent tax authority with relevant materials such as the original cost of the restricted shares and complete a settlement declaration, with overpayments refunded and underpayments made up.