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China: Extension of preferential tax treatment for depositary receipts of innovative enterprises

Extension from January 1, 2026, to December 31, 2027

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February 27, 2026

China announced in [2026] No. 8 the extension of preferential tax treatment for Chinese depositary receipts (CDRs) of innovative enterprises from January 1, 2026, to December 31, 2027.

Individual investors are exempt from income tax on CDR disposals, with differentiated tax rates on dividends. Institutional investors, including qualified foreign institutional investor (QFIIs) and Renminbi qualified foreign institutional investor (RQFIIs), are exempt from enterprise income tax and value added tax (VAT) on CDR disposals and related gains.


For more information, contact a KPMG tax professional in China:

Tracey Zhang | tracy.h.zhang@kpmg.com

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