Notice of Ministry of Finance, State Administration of Taxation and China Securities Regulatory Commission concerning Tax policies on the Shanghai-Hong Kong Stock Exchanges Link Pilot Program (Caishui [2014] No.81) (财政部、国家税务总局、证监会关 于沪港股票市场交易互联互通机制试点有关税收政策的通知)

On October 31, 2014, MoF, SAT and CSRC jointly released tax circular Caishui [2014] No.81 (“Circular 81”) to specify tax policies concerning the pilot program linking Shanghai and Hong Kong Stock Exchanges (the “Pilot Program”). The Pilot Program started functioning on November 17, 2014. These are the main highlights of Caishui 81:

  • For mainland investors invest in shares that are listed in the Hong Kong Stock Exchange through the Pilot Program:

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  • For Hong Kong investors of “A shares” that are listed in the Shanghai Stock Exchange through the Pilot Program:

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Date of issue: October 31, 2014. Date of effectiveness: November 17, 2014.