Ministry of Finance and State Administration of Taxation issues notice on tax policies for the transfer of state-owned equity and cash income to supplement social security funds operations management.

The Ministry of Finance and the State Taxation Administration have issued a notice on the tax policies for the transfer and enrichment of social security fund state-owned equity and cash income operation management. In order to support the operation management of the transfer and enrichment of social security fund state-owned equity and cash income, the relevant tax policies are as follows: 1. All interest and income of interest nature obtained by the transferor in the process of using the transferred state-owned equity and cash income for investment, as well as income from the transfer of financial commodity, are exempt from value-added tax. 2. The income obtained from the transfer of state-owned equity and cash income investment is exempt from corporate income tax. 3. The transferee is exempt from stamp duty on the transfer of non-listed state-owned equity by the transferee. 4. For the transfer of state-owned equity in listed companies by the transferee, as well as the securities transaction stamp duty payable on the purchase and sale of securities using cash income, the policy of assessment and refund shall be implemented. 5. The term "transferee" in this notice refers to the entity responsible for the operation management of state-owned equity and cash income as stipulated in the "Notice of the State Council on Printing and Distributing the Implementation Plan for Transferring Part of State-owned Capital to Enrich the Social Security Fund." This includes: the National Social Security Fund Council, as well as state-owned sole proprietorship companies established by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, responsible for centralized holding, management, and operation of transferred state-owned equity, or companies with state-owned capital investment operation functions entrusted to manage transferred state-owned equity with a special account. 6. This notice shall be implemented from April 1, 2024. Taxes already paid before the issuance of this notice that meet the requirements of this notice can be refunded.