In order to support the innovative development of enterprises, the relevant individual income tax policies on equity incentives of listed companies are announced as follows:

I. Stock options, restricted shares and equity awards granted to individuals by listed companies in the territory, upon filing with the competent tax authorities, individuals may pay individual income tax within a period of not more than 36 months from the date of exercising the stock options, lifting the restriction of the restricted shares or obtaining the equity awards (hereinafter referred to as exercising the options), within a period of not more than 36 months. period to pay individual income tax. If the taxpayer leaves his/her job within this period, he/she shall pay the full tax before leaving his/her job. 

II. Domestic listed companies as referred to in this announcement refer to companies whose shares are listed and traded on the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange. 

Third, this announcement shall be implemented from January 1, 2024 to December 31, 2027, and taxpayers who exercise their rights during this period may follow the provisions of this announcement. Taxpayers who exercise their rights after January 1, 2023 and have not yet paid all the taxes may follow the provisions of this announcement, and the period for paying taxes in installments will be calculated from the date of their rights. 

Four, securities regulators and tax authorities to establish an information-sharing mechanism, quarterly to the tax department to share information related to equity incentives for listed companies, finance, tax, securities regulators to do a good job of policy implementation. 

V. The following documents or clauses are also repealed:

(1) Article 2(1) of the Circular of the Ministry of Finance and the State Administration of Taxation on the Improvement of Income Tax Policies Relating to Equity Incentives and Technology Shares (Cai Shui [2016] No. 101). 

(ii) Circular of the Ministry of Finance and the State Administration of Taxation on the Policy of Phased Taxation of Equity Incentives in the Core Zone of Zhongguancun National Innovation Demonstration Zone (Haidian Park) (Cai Shui [2022] No. 16). 

This announcement is hereby made. 

Ministry of Finance General Administration of Taxation

April 17, 2024