Under the new incentives, the IHQ is entitled to an exemption of corporate income tax on income derived from overseas branch offices. Furthermore capital gains from the transfer of shares of affiliated foreign companies are tax exempted and there will be no withholding tax applied on dividends paid to the IHQ’s foreign shareholders for the part of the IHQ’s income that falls under the CIT exemption. Both measures shall boost the attractiveness of the IHQ to serve as a group holding company. There are also exemptions from the specific business tax and withholding tax on intercompany loans.