After promulgating the Circular on Personal Income Tax Policies Concerning Personal Non-monetary Asset Investment on March 30, 2015, the State Administration of Taxation promulgated the Announcement on Issues Relating to the Levy and Management of Personal Income Taxes From Personal Non-monetary Asset Investment (the "Announcement") on April 8, 2015 with the following highlights:

First, pursuant to the Announcement, if a taxpayer invests via real estate, the local tax agency where the real estate is located shall be the competent tax agency; and if a taxpayer invests overseas via shareholding in an enterprise, the local tax agency where the enterprise is located shall be the competent tax agency. Under other circumstances where a taxpayer invests via other non-monetary assets, the local tax agency where the invested enterprise is located shall be the competent tax agency.

In addition, the Announcement specifically stipulates that if a taxpayer cannot provide the relevant supporting materials to accurately calculate the historical cost of the original value of the non-monetary asset, the competent tax agencies may assess the value pursuant to law.

Finally, the Announcement requires taxpayers to formulate their tax payment installment plan and proceed with the formalities for the tax payment installment with the competent tax agency prior to the 15th of the month after the month in which the shares of the invested enterprises were acquired. If a taxpayer needs to adjust the installment plan during the installment period, the taxpayer will need to redo the formalities for the tax payment installment with the competent tax agency.

The Announcement came into effect on April 1, 2015.