Laws of the People's Republic of China

The State Administration of Taxation

Circular of the State Administration of Taxation on Strengthening the Works Relating to Withholding and Payment of the Individual Income Tax from Interests of Enterprises Bond

GuoShuiHan [2003] No.612

June 6, 2003

Local tax bureaus of the provinces, autonomous regions and municipalities directly under the Central Government and municipalities separately listed on the state plan:

In order to further strengthening the management of the levy and collection of the individual income tax from interests of enterprises bonds, and safeguard the timely entry of full tax into the state treasury, the issues on the management of levy of the income tax from interests of enterprises bonds are notified as follows through research and investigation:

I.

The individual income tax from interests of enterprise bonds shall be uniformly withheld and paid by the conversion institutions when converting and paying the interests to the holders of bonds, which shall be directly entered into the state treasury. The conversion and paying institutions shall do well in the works relating to the withholding and payment of the individual income tax according to the relevant provisions of the individual income tax law.

II.

Various levels of tax administration shall strengthen the management on the work of the conversion and paying institutions relating to withholding and payment of the individual income tax.

III.

The Circular shall be implemented as of the date of the delivery.