China: QFII – capital gains derived may be subject to tax
January 24, 2013It has been reported that the Securities Regulatory Commission (CSRC) and the State Administration of Taxation (SAT) have recently agreed on expanding the taxation of qualified foreign institutional investors (QFII).
Currently, QFIIs are subject to enterprise income tax at a rate of 10% on dividends, profits and interest, but are exempt from tax on capital gains on securities. It is expected that the capital gains derived by QFII would be included in the taxable income.
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