According to the Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Some Preferential Policies for Enterprise Income Tax (Caishui [28] No.1), the income obtained from the distribution of securities investment funds will not be subject to enterprise income tax for the time being.

article 26, paragraph 2 of the enterprise income tax law, "dividends, bonuses and other equity investment income between qualified resident enterprises are exempt from tax" refers to the investment income obtained by a resident enterprise directly investing in other resident enterprises, and there is no control restriction, but it does not include the investment income obtained by continuously holding shares publicly issued and listed and circulated by a resident enterprise for less than 12 months. The investment income obtained by a resident enterprise from continuously holding shares publicly issued and listed by the resident enterprise for less than 12 months shall be incorporated into the taxable income of the current period to calculate and collect enterprise income tax.