BEIJING, Jan. 21 (Xinhua) -- To facilitate innovation-driven development, Chinese authorities announced on Wednesday that they will extend tax preferential policies for the pilot program supporting innovative firms issuing Chinese Depositary Receipts (CDRs) through the end of 2027.

From Jan. 1, 2026, to Dec. 31, 2027, individual investors will be exempt from personal income tax on capital gains from transferring innovative firms' CDRs, according to a statement jointly issued by the Ministry of Finance, the State Taxation Administration, and the China Securities Regulatory Commission.

Meanwhile, a differentiated personal income tax policy will continue to be applied to dividend income obtained by individuals holding such CDRs.

For dividends that have already been taxed overseas, individual investors are entitled to tax credits in accordance with China's personal income tax law and relevant bilateral tax treaties or arrangements, the statement said.

The announcement also extends the existing corporate income tax and value-added tax policies for various types of investors. ■