1. Foreign shareholder
   
   According to Notice on Several Policies Related to Individual Income Tax issued by Ministry of Finance and State Taxation Administration, dividends obtained by foreign individuals from foreign-invested enterprises shall be temporarily exempted from individual income tax.
   
   
2. Individual shareholder of listed company (NEEQ)
   
   According to Notice on Continue to Implement Differentiated Individual Income Tax Policy on Dividends from NEEQ issued by Ministry of Finance, State Taxation Administration and China Securities Regulatory Commission, if individual holds stocks of listed company from NEEQ for more than 1 year, the dividends obtained shall be temporarily exempted from IIT.
   
   If individual holds stocks of listed company from NEEQ less than one month (including one month), dividend income shall be calculated as taxable income at full amount; If the holding period is more than 1 month but less than 1 year (including one year), 50% of dividend income shall be calculated as taxable income. The afore-mentioned income both apply to Individual Income Tax at the rate of 20%.
   
   * Listed company refers to a non-listed public company whose shares are publicly transferred through National Share Transfer System for small and medium-sized enterprises; Holding period refers to the date when individual obtains stocks of listed company to the date before transfer of the stocks.
   
   
3. Individual shareholder of listed company
   
   According to Notice on Differentiated Individual Income Tax for Dividend of Listed Company issued by Ministry of Finance, State Taxation Administration and China Securities Regulatory Commission, if the holding period of stocks obtained by individuals from public offering and transfer market is more than 1 year, whose dividends shall be temporarily exempted from Individual Income Tax.
   
   If individual holds stocks of listed company that obtained from the public offering and transfer market for less than one month (including one month), dividend income shall be calculated as taxable income at full amount; If the holding period is more than 1 month but less than 1 year (including one year), 50% of dividend income shall be calculated as taxable income. The afore-mentioned income both apply to Individual Income Tax at the rate of 20%.

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