May 24 – China’s State Administration of Taxation (SAT) promulgated the “Announcement on Issues Concerning Individual Income Tax (IIT) on Individual Investors’ Post-Equity Acquisition Increase of Share Capital Converted from the Previously Accumulated Surplus of the Enterprise” (SAT Announcement [2013] No. 23, hereinafter referred to as “Announcement 23”) on May 7, 2013, which will enter into force on June 7, 2013.
The purpose of Announcement 23 is to clarify the IIT liability of individual investors who acquire 100 percent equity from an enterprise and then convert the enterprise’s accumulated surplus into share capital after the transaction. Continue reading




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