China

事关个人所得税！财政部、税务总局、证监会等三部门发布

STCN | Local Language | News | Jan. 23, 2026 | Regulation

On January 21, 2026, the Ministry of Finance, State Taxation Administration, and China Securities Regulatory Commission jointly announced the continuation of tax policies for the pilot domestic issuance of depositary receipts (CDRs) by innovative enterprises. From January 1, 2026, to December 31, 2027, individual investors will be temporarily exempt from personal income tax on price-differential gains from transferring CDRs of innovative enterprises.

During the same period, a differentiated personal income tax policy will apply to dividend income received by individual investors holding CDRs. Tax withholding and payment responsibilities fall on the domestic depositary institution, which must also file detailed reports with the tax authorities. Foreign tax credits may be granted for dividends already taxed abroad, according to relevant laws and bilateral tax treaties.

For corporate investors, price-differential gains and dividend income related to CDRs of innovative enterprises will follow existing enterprise income tax policies for share transfers and dividends. Public securities investment funds are temporarily exempt from enterprise income tax on these gains and dividends. Qualified foreign institutional investors (QFII) and renminbi qualified foreign institutional investors (RQFII) will treat such gains and dividends as income related to the transfer or holding of the underlying shares of the CDRs for enterprise income tax purposes.

The announcement defines "CDR of innovative enterprises" as securities issued domestically by a depositary based on overseas shares, meeting the pilot enterprise criteria set by the State Council and CSRC guidelines. These CDRs represent rights in the underlying overseas securities.

Global Times | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

Chinese Ambassador Sun Lei, Chargé d'Affaires a.i. to the UN, stated on January 21, 2026, that Japan is fundamentally unqualified to seek a permanent seat on the UN Security Council. He argued that Japan cannot shoulder the responsibility of maintaining international peace and security nor gain the trust of the global community.

Sun highlighted that the Security Council is central to upholding the postwar international order and that Japan's historical militarism has not been fully addressed. Despite the Tokyo trials punishing Japanese war criminals 80 years ago, right-wing forces in Japan have sought to whitewash wartime atrocities such as the Nanjing Massacre and forced labor, while revising history textbooks and honoring Class-A war criminals at the Yasukuni Shrine.

He also criticized Japanese leaders, including Prime Minister Sanae Takaichi, for provocative remarks on Taiwan, pro-nuclear positions, and efforts to revise security policies, which Sun viewed as a push toward remilitarization that threatens regional and global security.

Sun concluded that a country that denies its wartime crimes, challenges World War II outcomes, and disregards the postwar order cannot be trusted with the responsibilities of a permanent Security Council member. China, as a current permanent member, expressed its willingness to collaborate with peace-loving nations to uphold the postwar order and maintain the Security Council's authority and unity.

Xinhua | English | News | Jan. 23, 2026 | Accidents

Eight individuals who were previously missing after a steel plant explosion in Inner Mongolia have been confirmed dead, increasing the total death toll to 10. The victims were found without vital signs following extensive search and rescue efforts at Baogang United Steel's plate plant in Baotou City.

The explosion occurred on January 18 and involved a 650-cubic-meter saturated water and steam spherical tank. In addition to the fatalities, 84 people were injured, all of whom remain in stable condition. Over 1,000 personnel from various government departments participated in the rescue operation.

Authorities have initiated a city-wide inspection to identify hidden workplace safety risks. Public security officials have taken legal actions against those responsible within the company. An ongoing thorough investigation is examining the cause of the accident.