Pursuant to the Notice on Taxation Policies concerning the Pilot Program of an
Interconnection Mechanism for Transactions in the Shanghai and Hong Kong Stock Markets (Cai Shui [2014] No. 81):
For dividends
received by the Mainland China investors who invest in H shares of the Company via the Shanghai-Hong Kong Stock Connect, the Company will withhold and pay income tax at the rate of 20% on behalf of such individuals and investment funds. The Company
will neither withhold nor pay income tax of the dividends received by corporate investors, and the tax should be declared and paid by the corporate investors themselves.
For dividends received by Hong Kong investors (enterprises or individuals) that invest in A shares of the Company via the Shanghai-Hong Kong
Stock Connect, income tax shall be withheld at the tax rate of 10% by the Company and the Company shall undergo the procedure of tax withholding and declaration with the tax authorities in charge. For investors who reside in a country which has
entered into a tax agreement with the PRC stipulating a tax rate of less than 10% in respect of dividend, the enterprises or individuals may apply to the taxation authority of the Company for tax preference of the tax agreement by themselves or
authorize the tax withholding obligator to file such an application. The taxation authority in charge will, after verification and approval, refund the taxes based on the difference between the taxes levied and the taxes payable calculated according
to the tax rate of the tax agreement.
The Company will determine the country of residence of the Individual H Shares Shareholders based on
the registered address as recorded in the register of members of the Companys H shares (the Registered Address) as at the close of business on Monday, 29 June 2020 and will withhold and pay individual income tax on that basis.
If the country of residence of the Individual H Shares Shareholder is not the same as the Registered Address, the Individual H Shares Shareholder shall notify the Companys H shares share registrar, Hong Kong Registrars Limited at 17M Floor,
Hopewell Centre, 183 Queens Road East, Wanchai, Hong Kong, and provide relevant supporting documents not later than 4:30 p.m. on Tuesday, 23 June 2020. If the Individual H Shares Shareholders do not provide relevant supporting documents
to the Companys H shares share registrar within the time limit stated above, the Company will determine the country of residence of the Individual H Shares Shareholders based on the Registered Address recorded in the register of members of the
Companys H shares as at the close of business on Monday, 29 June 2020.
The Company will assume no liability and will not
entertain any claims arising from and whatsoever in respect of any delay or error in determination of the residency status of the H shares shareholders of the Company or any disputes over the tax withholding mechanism.
If holders of the Companys H shares have any questions regarding the aforesaid arrangements, please consult your tax advisor on the
taxation impact in Mainland China, Hong Kong and other countries (regions) for owning and disposing the Companys H shares.
The
record date, distribution procedures and time for the distribution of dividends applicable to holders of the Companys A shares will be announced in a separate announcement.
|
5.
|
The Secretariat for the AGM is: The Secretariat of the Board of Sinopec Shanghai Petrochemical Company Limited,
the contact details are as follows:
|
No. 48 Jinyi Road, Jinshan District, Shanghai, the PRC
Postal code: 200540
Telephone:
(8621) 57943143
Fax: (8621) 57940050
9