The “Circular on Strengthening the Administration of the Collection of Individual Income Tax on the Transfer of Restricted Shares” was released by the State Administration of Taxation (SAT) to explain the collection process of Individual Income Tax (IIT). It states that a taxpayer is required to pay an overdue tax bill if the amount deducted and withheld by the securities institution is less than the actual tax payment. Furthermore, it states that ITT on the transfer of restricted shares shall be deducted and withheld by securities institutions or declared for payment by taxpayers themselves. An application may be filed for settlement if there is a difference between the tax payable calculated on the basis of actual income and cost, and the amount deducted by the securities institution. Authorities shall repay a tax payable if it is less than the amount deducted and withheld by the securities institutions. If the tax payable is higher than the deducted and withheld amount, then the taxpayer shall pay an overdue tax bill.