The Ministry of Finance and the State Taxation Administration released on December 31, 2021 the Announcement on the Collection of Individual Income Tax on Income from Equity Investments, to be effective from January 1, 2022.
It is specified that the audit collection method would be uniformly applied for the calculation and collection of individual income tax (IIT) on wholly Individually-owned enterprises and partnerships that hold equity investments such as equity interest, shares, and property shares of partnership, and the said enterprises and partnerships should voluntarily inform the tax authorities about their holding of equity investments within 30 days from the holding date, or inform the tax authorities about their holding of equity investments before January 30, 2022 if they have held the investments before the implementation of the Announcement.