[The three departments issued an announcement on regulating the personal income tax policy for the transfer of restricted shares of listed companies] On August 28, according to the Ministry of Finance, in order to standardize the personal income tax policy for the transfer of restricted shares of listed companies, the relevant matters are hereby announced as follows: 1. Income obtained by individuals from the transfer of restricted shares of listed companies shall be subject to a personal income tax rate of 20% as "income from property transfer". The term "restricted shares" as mentioned in this announcement includes the restricted shares specified in Article 2 of the "Notice of the Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission on Issues Concerning the Collection of Personal Income Tax on Income from Individuals Transferring Restricted Shares of Listed Companies" (Caishui [2009] No. 167), as well as the transfer and transfer of shares that arise after the lifting of the ban and are subject to equity registration after the implementation of this announcement. If restricted shares are given away, transferred, or reduced, the securities registration and clearing company shall adjust the original cost of the restricted shares based on the proportion of shares given away, transferred, or reduced. 2. Listed companies shall, in accordance with the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Issues Concerning Individuals Transferring Restricted Shares of Listed Companies after the Technical and System Preparations of Securities Institutions are Completed" (Caishui [2011] No. 108), when applying to the Securities Depository and Clearing Corporation for initial registration of shares, they shall declare detailed information on the original cost of the restricted shares provided by the individual restricted stock holders, as well as an authentication report issued by intermediaries such as accounting firms and tax accounting firms on this information. After the implementation of this announcement, if a listed company fails to declare the original cost of restricted shares as required when applying for initial registration of shares, when an individual transfers restricted shares, the securities institution will calculate withholding and prepayment of personal income tax based on the full income from the transfer of restricted shares and a 20% tax rate. After withholding and prepaying taxes, taxpayers may handle liquidation declarations in accordance with the provisions of Article 3 of this Announcement. Before the implementation of this announcement, if a listed company has completed the initial registration of shares and has not declared the original cost of the restricted shares, after the implementation of this announcement, when an individual transfers the restricted shares, the securities institution will withhold and pay personal income tax in advance, and the original cost and reasonable taxes can be determined at 15% of the income from the transfer of the restricted shares. After withholding and prepaying taxes, taxpayers shall make liquidation declarations in accordance with the provisions of Article 3 of this Announcement. 3. If the tax payable calculated by the taxpayer based on the actual transfer income and actual cost of the restricted shares is greater than the tax withheld by the securities institution, or is less than the tax withheld by the securities institution and applies for a tax refund, it shall provide relevant information such as the original cost of the restricted shares to the competent tax authorities before June 30 of the year following the transfer of the restricted shares and make a liquidation declaration. Any excess will be refunded and any tax will be paid. 4. The listed companies mentioned in this announcement refer to joint-stock companies whose stocks are listed and traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange. 5. Individuals who transfer original shares of companies listed on the National Equities Exchange and Quotations (hereinafter referred to as listed companies) and Beijing Stock Exchange-listed companies shall pay personal income tax in accordance with the provisions of this announcement. Before the implementation of this announcement, a listed company has gone through initial registration and has not declared the original cost of its original shares. After the implementation of this announcement, if it enters the Beijing Stock Exchange for listing and trading through public issuance, the securities institution will withhold and pay personal income tax in advance, and can determine the original cost and reasonable taxes based on 15% of the income from the transfer of original shares. After withholding and prepaying taxes, taxpayers shall make liquidation declarations in accordance with the provisions of Article 3 of this Announcement. 6. This announcement shall come into effect from the date of promulgation. If the previous provisions are inconsistent with the provisions of this announcement, the provisions of this announcement shall prevail.