To comply with the Italian FTT law, with effect from 1 March 2013, customers who trade shares issued by Italian resident companies which listed on The Stock Exchange of Hong Kong Limited (e.g. Prada S.p.A. (Stock Code: 1913) via our Bank are required to pay for the Italian FTT. The tax rate is currently 0.1% in respect of shares listed on the Stock Exchange of Hong Kong Limited and settled in 2014 and onwards.

Italian FTT is calculated based on daily net increase of customer's beneficial holding of the same share at account level on each settlement day x weighted average purchase price x 0.1%. Example: Customer buy/sell the same shares “A” which is issued by Italian resident company on the same day via the same securities account:

• Buy 500 shares – Purchase price HKD50.00
• Buy 200 shares – Purchase price HKD55.00
• Sell 400 shares – Sell price HKD50.00

Calculation Method

Net buy quantity is 300 shares (Buy 700shares – Sell 400shares)

Weighted average purchase price is ((500x50)+(200x55)/700 = HKD51.43

Amount of Italian FTT payable is: 300shares x HKD51.43 x 0.1% = HKD15.43

The above tax rate and calculation method etc. of Italian FTT may be subject to changes or further clarification on the Italian FTT law. Such third party costs, fees and charges are subject to change without prior notice and will be determined by the Bank.