北京进一步加强自然人股权转让个税征管力度(英文版).pdfVIP

Beijing Tightened the IIT Collection and Administration of Individual’s Capital Income Derived from share trade By minterpku As early as in 2009, the State Administration of Taxation (“SAT”) had expressly provided in the Notice on Strengthening the Administration of the Individual Income Tax on Share Trade (“Circular 285”) , the individual Income tax (“IIT”) shall be declared or withheld on time when the share transfer incurred, and the tax payment or exemption certificate issued by the competent tax authority shall be provided with the in-charge Administration of Industry and Commerce (“AIC”) for the purpose of registering the shareholder change. However, due to the absence of the information exchange between the tax authority and the AIC in the past, the above provisions of Circular 285 were not being strictly implemented in practice. To plug this regulatory loopholes, on 22 December 2011, the SAT and the AIC jointly issued Notice on the Strengthening the Cooperation between the Tax Authorities and the AIC on Information Exchange of Share Trade”(“Circular 126”), providing that the tax authorities shall conduct information exchange with AIC on monthly basis and the information exchange shall be completed within 15 days following the end of the month. Since then, many local tax authorities significantly strengthen the IIT collection and administration for individual capital gain income derived from share trade, and issued some regional implementation rules. Recently, the Beijing local tax authority and Beijing AIC jointly issued two local announcements with the same title as: Announcement on Several Issues of Strengthening the IIT Collection and Administration of the Capital Gains Derived from Individual Share Trade (“Announcement No.5 6). The two Announcements further detail the general procedures to handle the tax declaration or withholding, the tax declaration period, and the requ