China Introduces Tax Incentives for Investment in Chinese Depositary Receipts of Innovative Companies

China's Ministry of Finance announced on 12 April 2019 the launch of a pilot program providing new tax incentives to support China innovative-driven strategy, which includes incentives for investments in Chinese Depository Receipts (CDRs) issued by innovative Chinese enterprises. For qualified institutional investors, the incentives provide a tax exemption on capital gains and dividends derived from qualifying CDRs. Exemptions in relation to CDRs are also provided for individual income tax a…