Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues Concerning Administrative Settlement Funds

This notice clarifies the tax treatment of administrative settlement funds in the securities and futures sector, specifying that such funds are not deductible for income tax purposes by the settling party, are exempt from corporate income tax when collected by the China Securities Investor Protection Fund, and are subject to corporate income tax for enterprise investors but temporarily exempt from individual income tax for individual investors.