What are the differences in tax treatment of dividends obtained by different companies:

The first1Circumstances: Domestic natural person shareholders, investing in domestic non-listed companies.

[Policy Basis] According to the Individual Income Tax Law, income from interest, dividend and bonus shall be subject to individual income tax, and the applicable proportional tax rate is20%.

The first2Circumstances: Domestic natural person shareholders investing in domestic New Third Board companies.

[Policy basis: Announcement on Continuing to Implement the Differentiated Individual Income Tax Policy on Dividends and Dividends of Listed Companies in the National Small and Medium-sized Enterprise Share Transfer System (Ministry of Finance, State Administration of Taxation, China Securities Regulatory Commission2019Annual regulation78Notice) stipulates:

(1) The individual holds the stocks of the listed company, and the holding period exceeds1Dividend and bonus income shall be temporarily exempted from individual income tax.

(2) The individual holds the shares of the listed company for a period of time between1Within months (inclusive1(month), the total amount of income from dividends and bonuses shall be included in the taxable income amount; Holding period in1More than a month to1Years (inclusive)1), its dividend income is temporarily reduced50%Included in the taxable income amount; The above income applies uniformly20%Individual income tax is levied at the tax rate of

Listed companies as mentioned in this announcement refer to non-listed public companies whose stocks are publicly transferred through the national Share Transfer System for small and medium-sized enterprises; The holding period refers to the holding period from the date when an individual obtains the stocks of the listed company to the day before the delivery of the stocks.

The first3Circumstances: Domestic natural person shareholders, investment in domestic listed companies (shareholders of tradable shares).

[Policy Basis] Ministry of Finance State Administration of Taxation Notice of China Securities Regulatory Commission on Issues Related to the Differentiated Individual Income Tax Policy on Dividends and Bonuses of Listed Companies (Finance and Taxation[2015]101No. ) provides that:

(1) Stocks of listed companies acquired by individuals from the public offering and transfer market, for which the holding term exceeds1Dividend income is temporarily exempted from individual income tax.

(2) Stocks of listed companies obtained by individuals from the public offering and transfer market, and the holding period is1Within a month(containing1month)If the dividend and bonus income is included in the taxable income amount in full; Holding period in1More than a month to1years(containing1years)Temporarily reduce the press50%Include in taxable income;The above income applies uniformly20%Individual income tax is levied at the tax rate of

The first4Circumstances: Domestic natural person shareholders, investing in domestic listed companies (restricted stock shareholders).

[Policy Basis] Ministry of Finance State Administration of Taxation Notice of China Securities Regulatory Commission on Issues Related to the Implementation of Differentiated Individual Income Tax Policy on Dividends and Bonuses of Listed Companies (Finance and Taxation[2012]85As for the restricted shares of listed companies held by individuals, the dividends and dividends obtained after the lifting of the ban shall be calculated and taxed in accordance with the provisions of this notice, and the holding time shall be calculated from the lifting date; Dividends obtained before lifting the ban will continue to be temporarily reduced50%If it is included in the taxable income amount, it is applicable20%Individual income tax is levied at the tax rate of

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