China extends preferential personal income tax policies

BEIJING - China will continue to implement preferential personal income tax policies related to listed companies' equity incentives and stock connect programs between the mainland and Hong Kong financial markets.

The equity incentives of listed companies will continue to be taxed separately from Jan 1 to Dec 31, 2023, according to the Ministry of Finance and the State Taxation Administration on Monday.

Favorable personal income tax policies related to mainland-Hong Kong stock connect programs and the mutual recognition of funds will also remain effective this year.

Authorities expect the policies to support business innovation and the opening-up of the capital market.