The Ministry of Finance, State Administration of Taxation, and China Securities Regulatory Commission jointly issued “Notice on Issues Relating to Differentiated IIT Policies for Dividends Derived from Listed Companies” (Cai Shui [2015] No.101) to suspend IIT on dividends for long-term individual investors who obtained shares of listed companies via public offerings and market transfer and held for more than one year. Individual investors are recommended to understand thoroughly the new differentiated IIT policy for dividends and ensure that the amounts of incomes and IIT liabilities are correctly captured in the annual IIT returns. In addition, despite the role of China Securities Depository and Clearing Corporation Limited (CSDCC) in computing the tax payable, listed companies, as the withholding agent that is responsible for tax withholding and reporting, still need to check the amount of tax payable based on the relevant documents and data provided by the CSDCC to ensure full compliance.