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Income tax on securities trading exempted

Posted on March 21, 2008 by China Briefing

Mar. 21 – In a move aimed at boosting the current gloomy stock market, China will not levy a tax on corporate earning from securities trading at the moment.

Income from stock and bonds trading by securities investment funds will be free from corporate income tax for the time being said a statement released by the Ministry of Finance and the Administration of Taxation on Wednesday.

According to Xinhua, institutional investors and funds managers do not need to pay such tax for income from funds management.

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One Response to Income tax on securities trading exempted

Max Nightingale says:

March 23, 2008 at 6:54 pm

Result? Mainland stocks just rallied. Good notice of this thanks, and ahead of other agencies I notice here. This has really affected mutual funds in China with a lot of foreign investment in them. An early Easter present from the Chinese government to fund managers specialising in China plays! Merci beaucoup CB I got in about 12 hours ahead of the US markets and the effect was almost instantaneous. Xie xie, right?!