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SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON IMPLEMENTING RECORD-KEEPING ADMINISTRATION SYSTEM OF RELEVANT DOCUMENTS FOR TAX REFUND (EXEMPTION) ON EXPORTED GOODS

Supplementary Circular of the State Administration of Taxation on Implementing Record-keeping Administration System of Relevant Documents
for Tax Refund (Exemption) on Exported Goods

Guo Shui Han [2006] No. 904

State Taxation bureaus in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially
designated in the state plan:

In response to the problems reflected after the release of (Interim) Circular of the State Administration of Taxation on Implementing
Record-Keeping Administration System of Relevant Documents for Tax Refund (Exemption) on Exported Goods (Guo Shui Fa [2005] No. 199,
hereinafter referred to as the Circular), after research, a supplementary circular is hereby given as follows:

1.

Documents to be put on file as mentioned in Article 1 of the Circular, mainly refer to documents prescribed in the Contract Law of
the People’s Republic of China or documents stipulated by competent authorities on export trade. Considering that names of documents
to be put on file of some enterprises may be not fully consistent with that stipulated in the Circular, therefore, the appendix to
the Circular, Descriptions to Recording-Keeping of Relevant Documents for Tax Refund (Exemption) on Exported Goods has given a description
of the implications, functions, effects and so on and so forth of relevant documents to be put on file, so that record-keeping administration
in all localities may be carried out in accordance with the principles thereof. Where export enterprises fail to submit documents
to be put on file as is stipulated in the Circular, documents of similar contents or effects shall be provided as documents to be
put on file. Nonetheless, export enterprises that are to put documents on file for the first time shall present grounds in a written
way and furnish formalities of relevant documents to competent tax authorities before they commit record-keeping. Bureaus of State
Taxation in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially designated
in the State plan may also formulate, in light of de facto local conditions, specific provisions on administration of documents to
be put on file in accordance with the rules and principles prescribed in the Circular.

2.

The annex to the Circular, Descriptions to Recording-Keeping of Relevant Documents for Tax Refund (Exemption) on Exported Goods requires
that the “shipping orders of exported goods” have signatures of the Customs. Considering that it is difficult for export enterprises
to secure “shipping orders of exported goods” signed by the Customs, in practical work, provided the “shipping orders of exported
goods” to be put on records of export enterprises are in line with the implications of the Circular, signatures by the Customs shall
not be a prerequisite.

3.

Where documents to be put on file of export enterprises are in the form of electronic data or paperless data, record-keeping can be
taken in two methods:

(1)

Where paperless contracts such as electronic contracts and parol contracts instead of purchase and sale contracts in written form
are concluded by export enterprises, provided they are in accordance with the provisions of the Contract Law of the People’s Republic
of China, electronic contracts shall be printed by export enterprises, parol contracts shall be recorded in written form, be signed
by the handling person to indicate consistency with the facts and be affixed with official seals of enterprises for record.

As for record-keeping of other kinds of documents, in case export enterprises fail to secure paper documents or enterprise self-made
electronic documents on account of the adoption of paperless administration by competent state administrative authorities, export
enterprises may print pertinent electronic data into paper documents, affix them with official seals of enterprises and sign to indicate
the consistency of the printed documents with the original electronic data.

(2)

Aside from parol contracts, as for electronic purchase and sale contracts concluded by export enterprises, documents under paperless
administration by competent state administrative authorities and enterprise self-made electronic documents, export enterprises may
carry out electronic documents record-keeping administration upon application in written form which must be approved by competent
tax authorities, namely, export enterprises may put relevant documents on file in form of electronic documents. Export enterprises
shall guarantee the authenticity of electronic documents on file, back up relevant electronic data in a regular way and, when tax
authorities take documents to be put on file for inspection in accordance with rules and regulations, shall, in response to the requirements
of the said authorities, provide electronic data or paper documents, that is, printed electronic documents affixed with official
seals of enterprises.

4.

As regards businesses of special tax refund policies without involving export of goods, tax refund of the domestic equipment purchases
of enterprises with foreign investment, tax refund of bid-wining electromechanical products, tax refund of power and gas in export
processing zone, for instance, record-keeping administration system of documents shall not be implemented temporarily.

5.

Where documents to be put on file are incomplete after the release of the Circular, export enterprises shall make up for it in accordance
with the provisions of the supplementary circular herein before November 30, 2006.

State Administration of Taxation

September 30, 2006



 
State Administration of Taxation
2006-09-30

 






SUPPLEMENTARY CIRCULAR OF SHENZHEN STOCK EXCHANGE CONCERNING THE MATTERS ABOUT THE EQUITY DISTRIBUTION OF LISTED COMPANIES IN THE RULES OF SHENZHEN STOCK EXCHANGE FOR THE LISTING OF STOCKS

Supplementary Circular of Shenzhen Stock Exchange Concerning the Matters about the Equity Distribution of Listed Companies in the
Rules of Shenzhen Stock Exchange for the Listing of Stocks

Each listed company,

For the purpose of regulating the suspension or termination of the listing of stocks of listed companies and clarifying the explicit
requirements for the equity distribution of listed companies, relevant issues are hereby announced concerning the equity distribution
of listed companies as described in Subparagraph (4) of Article 14 .1.1 and Subparagraph (10) of Article 14 .3.1 in the Rules of
Shenzhen Stock Exchange for the Listing of Stocks (hereinafter referred to as the Rules for the Listing of Stocks) in accordance
with Article 19 .2 of the Rules for the Listing of Stocks:

1.

The circumstance that a listed company fails to meet the listing requirements any more due to alterations of equity distribution means
that: the shares held by the general public are not more than 25 percent of the total shares of the company; or are not more than
10 percent of the total shares of the company while the total stock capital of the company exceeds RMB 0.4 billion.

2.

The general public does not include:

(1)

a shareholder that holds 10 percent or more shares of a listed company as well as its coordinated actors; and

(2)

directors, supervisors, senior mangers of the listed company, as well as the related parties thereof.

3.

If a listed company has alterations of the equity distribution and then it does not satisfy the listing requirements any more for
20 successive trading days, the listing and trading of its shares shall be suspended by this Exchange. If the said company fails
to meet the listing requirements within 12 months as of the date when the listing and trading of its shares is suspended by this
Exchange, the listing and trading of its shares will be terminated by this Exchange. The said company can bring forward rectification
plans within the aforesaid period and resume the listing and trading of its shares after reporting to this Exchange for approval
so as to meet the listing requirements, nevertheless, a warning of delisting risk for the trading of its shares will be given. The
related operational procedures shall be governed by the related provisions in the Rules for the Listing of Stocks.

Please abide hereby.

Shenzhen Stock Exchange

August 30, 2006



 
Shenzhen Stock Exchange
2006-08-30

 






CIRCULAR OF THE STATE COUNCIL ON STRENGTHENING LAND CONTROL

Circular of the State Council on Strengthening Land Control

Guo Fa [2006] No. 31

The people’s governments of all provinces, autonomous regions and municipalities directly under the Central Government and all the
ministries and commissions and institutions directly under the State Council,

The CPC Central Committee and the State Council pay great attention to the land administration and control. Such aspects as strict
law enforcement of land, intensification of the planning administration, guaranty of the peasants’ rights and interests, promotion
of intensive utilization of land and improvement of the responsibility bylaws have been comprehensively stipulated in the Decision
of the State Council on Furthering the Reform and Rigidly Intensifying the Land Administration (Guo Fa [2004] No. 28), which was
issued in 2004. All the localities and departments have adopted the related measures for effective implementation and made some achievements
as well. However, some new trends and problems arise in land administration, especially the land control, namely, the overgrowth
of the aggregation of construction land, the over-expansion of low-cost industrial land, illegal or irregular use of land, and reckless
occupation of useable farmland are hard to be banned despite every effort, so the land restriction remains an arduous work. For the
purpose of further implementing the concept of scientific development and ensuring the sustainable development of economy and society,
more rigid measures for administration shall be adopted to enhance the land control earnestly. Therefore, related issues are hereby
notified as follows:

1.

Further Specifying the Responsibility of Land Administration and Protection of Useable Farmland Protection

The principals of the local people’s governments at all levels shall be wholly responsible for the reservation amount of useable farmland,
protection area of basic farmland, overall planning of land use and annual plan of implementation within their administration localities.
The controlling indicators of new construction land use (including the occupied agricultural land and undeveloped land) shall be
incorporated into the annul plan of land use and the an annual plan examination of land use, land administration and object examination
of the responsibility of useable farmland protection shall be based on the actual reservation amount of useable farmland and the
area of new construction land. Where there is any actual land use in excess of the planned quota in the current year, the planned
quota of the following year shall be deducted correspondingly. The Ministry of Land and Resources shall strengthen the examination
of actual construction land use and land expropriation.

The mode of examination and approval of the land used for urban construction shall be adjusted subject to the principle of consistency
between power and responsibilities. Within the scope of the land used for urban construction as determined in an overall plan of
land use, the change of agricultural land use and land expropriation shall be changed from examined and approved in batches by the
State Council to the annual submission after summarized by the people’s government at the provincial level, which shall, upon the
examination and approval of the Ministry of Land and Resources as well as the State Council, be carried out specifically by the people’s
government at the provincial level, and then an implementation scheme shall be submitted to the Ministry of Land and Resources for
filing.

The accountability system shall be implemented vigorously. In case of any serious consequence resulted from law-breaking or rule-breaking
land use within any administrative region, if the related organ fails to prevent the aforesaid problems or fails to investigate and
deal with them, even has any concealment or hiding of such problems, the responsibilities of the related principal of the local people’s
government shall be investigated. The Ministry of Supervision and the Ministry of Land and Resources shall attach great importance
to perfect the measures for prosecuting into the responsibilities of those principals liable for any law-breaking or rule-breaking
land use.

2.

Earnestly Guaranteeing the Long-term Livelihood of the Rural Residents Whose Land Has Been Expropriated

The allocation of compensation for land expropriation shall be performed under the principles of ensuring the original living conditions
of the rural residents whose land has been expropriated and guaranteeing their long-term livelihood. All the localities shall seriously
implement the provisions of the Document (Guo Ban Fa [2006] No. 29) and do well the employment training as well as social security
of the rural residents whose land has been expropriated. The social security premiums of these rural residents shall be incorporated
into the expenses for compensation and relocation upon land expropriation subject to related provisions and the unbalanced part shall
be supplemented by the local people’s government by means of the incomes as generated from the paid use of state-owned land. No land
requisition may be approved in the absence of a full contribution of the social security premiums.

3.

Regulating the Administration of Revenue and Expenditures in Land Alienation

The total price of the alienation of the state-owned land use right shall be incorporated into the local budgets in full amount, and
then be turned over into the state treasury and be subject to the separate administration of revenue and expenditures. The total
price of land alienation must, in full amount, be firstly applied to pay the expenses for land compensation, relocation subsidies
and above-ground fixtures as well as the expenses for young seeds, expenses for housing demolition and subsidies for the unbalanced
part as to the social security premiums of related rural residents. The rest part shall be used for raising the proportion of the
expenses for agricultural land development and rural infrastructure construction, for the construction of renting affordable housing
and construction of the supporting facilities for the improvement of utilization functions of state-owned land.

4.

Adjusting the Related Policies for Taxes and Fees for Construction Land Use

To enhance the standards for paying the fees for compensated use of new construction land. The payment scope of the fees for compensated
use of new construction land shall be determined according to the area of construction land actually added. The fees for compensated
use of new construction land shall be used exclusively for the construction and protection of basic farmland, land sort-out and development
of the useable farmland. Any illegal deduction or defaulted payment of the fees for compensated use of new construction land shall
be checked and recovered within a time limit. In particular, any deducted or exempted or defaulted amount upon the distribution of
the Document (Guo Fa [2004] No. 28) shall be cleared up before the end of this year. If it fails to clear up within the time limit,
the related inspection and approval for land use shall be suspended. The Ministry of Finance shall, jointly with the Ministry of
Land and Resources, promptly formulate the paying standards for compensated use of new construction land and the specific measures
for proper adjustment, as well as further improve and perfect the administration of distribution and utilization of the fees for
compensated use of new construction land.

The Ministry of Finance and the State Administration of Taxation shall, jointly with the Ministry of Land and Resources as well as
the Office of Legitimate Affairs, promptly formulate the specific measures for improving the standards of collecting the taxes on
urban land use and on occupation of useable farmland. The departments of finance and taxation shall enhance the collection and administration
of taxes and rigidly control the tax deduction and exemption.

5.

Establishing a System for Uniformly Publicizing the Standards for Minimum Price for Industrial Land Alienation

The state shall uniformly formulate and publicize the minimum rates for industrial land alienation for all localities in accordance
with the grade of land as well as the policies for regional land use. The minimum rates for industrial land alienation shall not
be less than the sum of the cost of obtaining land, the cost of land development in the prior period and the related expenses as
collected in light of related provisions. The industrial land must be transferred by means of bid tendering, auction or hanging out
a shingle at a price not less than the minimum rates as publicized. Where any land is transferred at a price no more than the rates
for the industrial land alienation, or any subsidy or refund is given in any form, within the range of illegally transferring the
state-owned land use right, for which the person concerned shall be investigated of legal liabilities subject to related laws.

6.

Prohibiting any Unauthorized Transition of Agricultural Land into Construction Land

The transition of agricultural land into construction land, must conform to the overall planning of land use, overall urban planning,
planning of villages and towns, and must be included into the annual plan of land use and go through the formalities for examination
and approval of a transition of agricultural land use according to related laws. Using agricultural land as collectively owned by
rural residents to carry out any non-agricultural construction by way of lease instead of expropriation or expanding the scale of
construction land without authorization shall be prohibited. The circulation of the use right of construction land under a collective
ownership of rural residents must be consistent with the planning and be strictly limited within the range of construction land as
legally obtained. If it fails to go through the formalities for inspection and approval of a transition of agricultural land, or
any functionary of the government organ approves any construction land by way of lease instead of expropriation, it is an illegal
distribution of land. Where any entity or individual unlawfully occupies any land for construction by way of lease instead of expropriation,
it is an illegal occupation of land, for which the person concerned shall be investigated of legal liabilities subject to related
laws.

7.

Strengthening the Surveillance and Examination of Land Administration

The government organs of land surveillance shall sincerely perform its functions and duties as distributed by the State Council and
strengthen the surveillance and examination of land administration by the local people’s government. With respect to any law-breaking
or rule-breaking problem found in the surveillance and examination, related opinions on correction or rectification shall be timely
brought forward. In case any correction or rectification fails to be exerted to a full extent, correction and rectification shall
be ordered within a time limit in accordance with related provisions. During the period of correction and rectification, the transition
of agricultural land and land expropriation in this region shall be suspended.

The administrative organs of land and resources as well as the personnel thereof shall rigidly carry out the related laws and regulations
as well as guidelines and policies for state land administration, perform administration subject to related laws and be responsible
for the genuineness and legality of land use. Where anyone neglects his duties and functions, abuses his official capacities, commits
irregularities for personal interests or fails to implement or comply with the related laws and regulations on land administration,
the liable principals and personnel shall be investigated of legal liabilities in accordance with related laws and regulations.

8.

Severely Punishing any Law-breaking or Rule-breaking Act of Land Use

If any functionary of the government organ illegally approves any expropriation or occupation of land or illegally alienation the
state-owned land use right at a low price, thereby breaking the criminal law, criminal liabilities shall be investigated. If it fails
to perform the state policies for land control, approves any quota-overstepping land use, fails to pay the fees for compensated use
of new construction land or other due taxes and fees within a time limit, fails to pay in full amount the fees for compensation and
relocation upon land expropriation within a time limit before conducting expropriation, or illegally changes the location of any
basic farmland by adjusting an overall planning of land use in order to avoid a report of occupying the basic farmland for construction
to the State Council for inspection and approval subject to related laws, the person concerned shall be investigated of administrative
liabilities.

The coordination mechanism of investigating into and punishing the illegal acts in any land case shall be improved and the strength
of investigating into and punishing any law-breaking or rule-breaking act of land use shall be enhanced. The Ministry of Supervision
shall, jointly with the Ministry of Land and Resources, conduct special actions emphasizing on investigation into and punishment
of any act of unlawful approval for land use, land use without any approval, over-use of land than what has been approved or illegal
alienation of state-owned land use right at a low price. Any major law-breaking or rule-breaking case of land use shall be disposed
publicly. If any crime is committed, it shall be transferred to the judicial organ for investigation of criminal liabilities.

All the localities and departments shall, taking Deng Xiaoping’s theory and the important thoughts of Three Represents as our guide,
fully implement the concept of scientific development, completely understand the importance of applying the strictest bylaws of land
administration and closely follow and resolutely implement all the measures of the Central Government for strengthening the land
control. All the localities shall perform this Circular while making an overall self-examination on the land administration and use
since the implementation of the Document (Guo Fa [2004] No. 28) and seriously punish any law-breaking or rule-breaking act as checked
out. The National Development and Reform Commission, the Ministry of Supervision, the Ministry of Finance, the Ministry of Labor
and Social Security, the Ministry of Land and Resources, the Ministry of Construction, the Ministry of Agriculture, the People’s
Bank of China, the State Administration of Taxation, the Statistics Bureau and the Office of Legislate Affairs, etc. shall go about
their respective terms of references, coordinate with each other closely, formulate the related supporting documents for the implementation
of this Circular and jointly improve the land control. The Ministry of Land and Resources shall, jointly with the Ministry of Supervision
and other related departments, do a good job in the surveillance and examination of the implementation of this Circular. All the
localities and departments shall submit the implementation of this Circular to the State Council before the end of 2006.

The State Council

August 31, 2006



 
The State Council
2006-08-31

 






ANNOUNCEMENT NO.50, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.50, 2006 of the General Administration of Customs of the People’s Republic of China

[2006] No.50

In accordance with the decision, the Customs Tariffs Committee imposed antidumping duty on imported Phenols from Japan, ROK, US and
Taiwan region of China, and the General Administration of Customs issued Announcement No. 3, 2004 therefor. In December, 2005, the
Ministry of Commerce decided to investigate the antidumping duty measure imposed on imported Phenols from LG Petrochemical Co. Ltd
of POK, and the General Administration of Customs issued Announcement No. 60, 2005 therefor, which stipulated that the Customs shall
levy antidumping deposit on the imported Phenols from LG Petrochemical Co. Ltd of POK which applied for import. In accordance with
the investigation result of new exporter review, the Customs Tariffs Committee of the State Council decided to adjust the anti-dumping
duty rate of imported Phenol from LG Petrochemical Co., Ltd. Under Announcement No. 64, 2006 of the Ministry of Commerce, the relevant
matters in respect of the implementation of the Customs are hereby notified as follows:

1.

As from September 5, 2006, while applying for importing Phenol from LG Petrochemical Co., Ltd., the anti-dumping deposit money shall
not be imposed in accordance with regulations of Announcement No. 60, 2005 of the General Administration of Customs.

2.

As from September 5, 2006, while applying for importing Phenol from LG Petrochemical Co., Ltd., the anti-dumping duty rate shall be
adjusted from 16% to 0%. The exceeding part of the already paid anti-dumping deposit money could be returned by the local Customs
in 6 month as from September 5, 2006.

3.

The anti-dumping duties on imported Phenol from Japan, ROK, the U.S. and Taiwan region of China shall still follow Announcement No.
3, 2004 of the General Administration of Customs.

Appendix: Announcement No. 64, 2006 of Ministry of Commerce of PRC

General Administration of Customs of PRC

September 1, 2006



 
General Administration of Customs of PRC
2006-09-01

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING RELATED SPECIFIC ISSUES IN RESPECT OF THE IMPLEMENTATION OF THE POLICIES ON ADJUSTING THE WAGES SUBJECT TO ENTERPRISE INCOME TAX

Circular of the State Administration of Taxation concerning Related Specific Issues in respect of the Implementation of the Policies
on Adjusting the Wages Subject to Enterprise Income Tax

Guo Shui Fa [2006] No. 137

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government, and cities specifically designated in the state plan:

Upon approval of the State Council, the quota of taxable wages to be deducted before the levy of enterprise income tax shall be uniformly
adjusted into RMB 1,600 per person per month as of July 1, 2006, and the policy of upward floating at 20 percent shall be halted
from implementation simultaneously. For the purpose of guaranteeing the smooth implementation of this policy from the second half
of this year, the relevant issues in the specific implementation are hereby announced as follows in accordance with the spirit of
the Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Policies on the Deduction of Wage
Expenditures Prior to the Levy of Enterprise Income Taxes (Cai Shui [2006]) No. 126):

1.

Adjusting the rate for deduction of taxable wages before the levy of tax is a specific measure for the effective implementation of
the spirit of the Central Economic Working Conference, and an important policy adjustment before the reform of combination of the
two laws concerning enterprise income tax as well, which is advantageous for reducing the tax burden gap between Chinese-funded enterprises
and foreign-funded enterprises, and achieving impartial competition gradually. This policy adjustment is of great significance, and
affects the interests of the taxpayers. Consequently, the taxation organs at each level shall attach great importance to the effective
implementation of the policies, publicize the new policies on taxable wages in a timely, comprehensive and deep manner, ensure that
the taxpayers understand the spirit of the new policies as soon as possible and then file returns of prepayable enterprise income
tax under the new policies.

2.

The taxation organs at each level, especially the grass-roots taxation organs, shall promptly devote into the policy adjustment, ensure
the effective implementation of the new policies on taxable wages within this year, in order that the taxpayers may enjoy the preferences
from the policy adjustment on taxable wages by the end of December.

(1)

All grass-roots taxation organs shall assess the amounts of reduced enterprise income taxes carefully as a result of policy adjustment
on taxable wages, and shall adjust prepayable amounts declared by the taxpayers in each month (quarter) from July to December of
this year based on the assessment.

(2)

The issues on the enterprises that prepay taxes at the actual amount for the term of tax payment shall be handled separately according
to such two circumstances:

(a)

In case an enterprise prepays enterprise income tax on a monthly basis, it shall calculate and deduct the prepaid amount at the deduction
proportion as assessed under the aforesaid requirements when filing returns of the prepayable taxes in each month from September
to December of this year. And the enterprise shall file returns of prepayable taxes of September together with calculating the reduced
amounts of July and August, which shall be used to offset the prepayable taxes of September, while the insufficient part shall be
offset by the prepayable taxes of the subsequent months in this year until it is fully offset. The enterprise shall file returns
of prepayable taxes of November in December together with calculating the reduced amount of December, which shall be used to offset
the prepayable taxes of November, while the tax refund procedures for the insufficient part shall be completed by the end of December.

(b)

In case an enterprise prepays enterprise income tax on a quarterly basis, it shall calculate the reduced amount of the fourth quarter
in addition to calculating the reduced prepayable amount of the third quarter at the assessed proportion of reduction when filing
returns of the prepayable enterprise income tax of the third quarter. The reduced prepayable amount shall be used to offset the prepayable
taxes of the third quarter, while the tax refund procedures for the insufficient part shall be completed by the end of December.

(3)

The issues on the enterprises that prepay taxes at a certain proportion of the amount of taxable income in the last year shall be
handled separately according to such two circumstances:

(a)

In case an enterprise prepays enterprise income tax on a monthly basis at 1/12 of the amount of taxable income of the last year, it
shall reduce the prepayable amount in each month at the same proportion of reduction as assessed in light of the aforesaid requirements,
and the reduced amount of prepayable taxes of July and August shall be calculated and reduced simultaneously in September. If the
reduced amount as calculated is negative, the part excessive to the amount of prepayable taxes of September shall be reduced continuously
when the returns of prepayable taxes in the subsequent months are filed, until the said amounts are completely offset. The enterprise
shall file returns of prepayable taxes of November in December together with calculating the reduced amount of December, and use
the said amount to offset the prepayable taxes of November.

(b)

The matter concerning an enterprise that prepays enterprise income tax on a quarterly basis at 1/4 of the amount of taxable income
of the last year shall be handled in the way subject to Subparagraph 2 of Paragraph (2) in this Article.

(4)

The issues on the enterprises, the taxes of which are levied based on verification, shall be handled separately according to such
two circumstances:

(a)

As for the approved rate of taxable income, the rate shall be lowered accordingly at the proportion of reduction as assessed under
the aforesaid requirements, the reduced amount after the rate of taxable income is lowered shall be calculated, and the issue shall
be handled in the way subject to Paragraph (2) of this Article.

(b)

As for the approved amount of payable income taxes, the quota of each month shall be reduced accordingly at the proportion of reduction
as assessed under the aforesaid requirements, and the issue shall be handled in the way subject to Paragraph (2) of this Article.

3.

The amount of tax reduction of the taxpayers occurring due to the policy adjustment on taxable wages shall be incorporated into the
range of final settlement and payment after the end of this year, and be subject to final settlement and payment together with others.

4.

The taxation organs at each level shall rigidly carry out these policies, and may not illegally raise the rate of taxable wages or
provision the floating proportion for the certain regions under any excuses or in any form after the new policies on taxable wages
come into force. If the taxable wage rates are higher than the uniformly prescribed rate of the state in practical implementation,
it shall be remedied promptly. You shall strictly implement the applicable scope of the policies on taxable wages by connection of
wages with performance. No enterprise may adopt the method of connecting wages with performance except for the state-owned and state-holding
industrial and commercial enterprises, and financial and insurance enterprises that implement the policies on taxable wages by connecting
wages with performance and are restructured or reformed into joint stock enterprises upon examination and approval of the Ministry
of Finance and the State Administration of Taxation.

Where there is any question arising from the implementation of the new policies on taxable wages, it shall be timely reported to the
State Administration of Taxation.

The State Administration of Taxation

September 1, 2006



 
The State Administration of Taxation
2006-09-01

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION OF THE PEOPLE’S REPUBLIC OF CHINA ON EXTENDING THE PREFERENTIAL TAXATION POLICIES ON POULTRY INDUSTRY

Circular of the Ministry of Finance and the State Administration of Taxation of the People’s Republic of China on Extending the Preferential
Taxation Policies on Poultry Industry

Cai Shui [2006] No. 113

The Financial departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities
directly under the central government and cities specifically designated in the state plan, and financial bureau of Xinjiang Production
and Construction Corps:

For purposes of preventing highly pathogenic avian influenza epidemic and continuing to support development of poultry industry, related
issues on tax of poultry industry are now announced as follows in accordance with spirit of Circular of General Office of the State
Council on Extending the Duration of Support Policies of Poultry Industry (Guo Ban Fa Ming Dian [2006] No.26):

1.

As from Jul 1, 2006 to Dec 31, 2006, value-added tax payers of poultry-processing industry and cold storage industry may enjoy instant
refund of value-added tax when processing and selling poultry industry, and are exempted from urban maintenance and construction
tax as well educational surcharge.

2.

The income from poultry raising (including breeding poultry raising), processing and cold storage shall be exempted from enterprise
income tax of 2006.

3.

The financial special subsidy of enterprise and individual from poultry cull shall be exempted from enterprise income tax or individual
income tax; all net loss caused by poultry cull shall be permitted to be listed in pre-tax expenditure.

4.

The reduced value-added tax and income tax shall be dealt with in accordance with the current financial system.

5.

All refunds after export of processed poultry products shall be sent back in time.

6.

If approved by People’s Government of provinces, autonomous regions and municipalities, enterprises and individuals operating poultry
(including breeding poultry) industry, poultry processing industry and cold storage industry may enjoy an exemption of a reasonable
part of city and town land use tax, real estate tax, and vehicle and vessel usage tax in 2006.

7.

Financial and tax departments at all levels shall earnestly implement the preferential taxation polices on poultry industry, so as
to build up a sound environment for sustainable, stable and healthy development for poultry industry. All taxation organs shall optimize
taxation service, enhance tax management of instant refund of poultry industry, make good use of information of tax and refund declaration
of the tax management and imposing system, so as to carry out tax evaluation in accordance with data of practical producing capacity
and sales. During the tax evaluation, related departments shall enhance analysis on producing capacity and sales, relations of input
and output as well as status of special invoices, preventing phenomenon of false invoice. If encounter any problem in tax evaluation,
please transmit to department of tax inspection in time.

8.

Urgent Circular of Ministry of Finance and State Administration of Taxation on Preferential Taxation Policies on Poultry Industry
(No.166, 2005) will be terminated at the same time.

The Ministry of Finance

The State Administration of Taxation

Sep 4, 2006



 
The Ministry of Finance, the State Administration of Taxation
2006-09-04

 






ANNOUNCEMENT NO.64, 2006 OF MINISTRY OF COMMERCE ON ARBITRATION OF REVIEW OF NEW EXPORTERS OF PHENOL

Announcement No.64, 2006 of Ministry of Commerce on Arbitration of Review of New Exporters of Phenol

[2006] No. 64

Ministry of Commerce released announcement No. 2, 2006 on Feb 1, 2004, deciding to impose anti-dumping duty on phenol originated from
Japan, South Korea, the USA and Taiwan Region. The anti-dumping duty rate on other companies of South Korea was stipulated to be
16 percent.

LG Petrochemical Co., Ltd. submitted applications to Ministry of Commerce on Oct 25, 2005 for review on new exporters. After examination,
Ministry of Commerce believed that the application fundamentally conformed to conditions of case registration of review of new exporter
and released Announcement No.88 on Dec 5, 2005, deciding to carry out review on anti-dumping measures applicable for imported phenol
originated from LG Petrochemical Co., Ltd..

The scope of commodity of the said review is same to that of commodity of the anti-dumping investigation, namely phenol, the tariff
code of which in the Import and Export Tariff of the People’s Republic of China is 29071110.

Ministry of Commerce carried out review on qualifications and dumping margin of the new exporter of LG Petrochemical Co., Ltd., and
put forward suggestions on modification of anti-dumping duties to the Tariff Committee of the State Council in line with investigation
results.

In accordance with Article 50 of Anti-dumping Regulations of the People’s Republic of China, Article 25 of Provisional Regulations
on Review of New Exporters of Anti-dumping and decisions of the Tariff Committee of the State Council, related issues are now announced
as follows:

1.

After review on exporters, Ministry of Commerce confirms that the anti-dumping duties applicable for imported phenol originated from
LG Petrochemical Co., Ltd. shall be zero percent.

2.

The balance of the earnest money that the importer paid during the review in line with announcement of case registration and the
anti-dumping duty in accordance with arbitration of this review will be handed back.

3.

During the period of implementing anti-dumping measures on imported phenol originated from South Korea, LG Petrochemical Co., Ltd.
shall take part in the relevant review.

This decision will take effect as from Sep 5, 2005.

Appendix: Ministry of Commerce Arbitration on Review of New Exporters of Imported Phenol Originated from LG Petrochemical Co., Ltd.

Ministry of Commerce

September 5, 2006



 
Ministry of Commerce
2006-09-05

 






REPLY OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE TAX EXEMPTION CONCERNING THE FRANCHISE ROYALTIES COLLECTED BY THE INTERNATIONAL OLYMPIC COMMITTEE

Reply of the Ministry of Finance and the State Administration of Taxation on the tax Exemption concerning the Franchise Royalties
Collected by the International Olympic Committee

Cai Shui [2006] No.133
September 21, 2006

Beijing Municipal Bureau of Finance, state tax bureaus and local tax bureaus:

We have received your Request for the Tax Exemption on the Franchise Royalties Collected by the International Olympic Committee (Jing
Cai Shui [2006] No.467), the reply is hereby given as follows:

A certain proportion of franchise royalties is collected by the International Olympic Committee on the franchise commodities exported
by the domestic franchise enterprises of the host country of Olympic Games base on the export wholesale price. The franchise royalties
fall into the incomes obtained by the International Olympic Committee within the territory of China and related to the 29th Olympic
Games. In accordance with the provision of Paragraph 1, Article 2 of the Circular of the Ministry of Finance, the State Administration
of Taxation and the General Administration of Customs on Several Issues Concerning the Tax Policies for the 29th Olympic Games (Cai
Shui [2003] No.10), we hereby consent to exempt the relevant taxes from the aforesaid income gained by the International Olympic
Games.



 
The Ministry of Finance, the State Administration of Taxation
2006-09-21

 






OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE PRE-INCOME-TAX DEDUCTION OF HOUSE SUBSIDIES OF THE EMPLOYEES IN FOREIGN-FUNDED ENTERPRISES SUCH AS AMECO BEIJING

Official Reply of the State Administration of Taxation concerning the Pre-Income-Tax Deduction of House Subsidies of the Employees
in Foreign-funded Enterprises Such as Ameco Beijing

Guo Shui Han [2006] No. 867

The State Taxation Bureau of Beijing Municipality:

We have received your Request for Instructions on the Pre-Income-Tax Deduction of House Subsidies of the Employees in Foreign-funded
Enterprises Such as Ameco Beijing (Jing Guo Shui Fa [2006] No. 177). We hereby give a reply as follows:

Ameco Beijing is a joint venture established through joint investment of Air China and Lufthansa German Airlines. In accordance with
the company’s Constitution as modified in 2004 and in view of its achievements as well as the contribution which is made by its employees,
both the Chinese and Foreign parties shareholders agree, given that shareholders can obtain reasonable returns by their contributions
in the registered capital within a profit-making year of the company, to provide to the Chinese employees of the company a one-off
welfare subsidy of 0.34 billion yuan with a distribution term of 10 years with a view to reducing any extra financial burden of the
Company wherever possible. In accordance with the aforesaid provisions of the Constitution of Ameco Beijing, it instituted an Implementation
Plan of Ameco for Monetized Distribution of Houses so as to distribute the house subsidies in cash to those employees who have not
enjoyed the welfare houses or whose houses have not met the standards prescribed by the company, as well as instituted the specific
norms and payment plan with a term of 10 years. The Housing Reform Office of Beijing Municipal People’s Government has approved the
Implementation Plan of Ameco for Monetized Distribution of Houses. In accordance with Article 24 of the Detailed Rules for the Implementation
of the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises as well as
the Circular of the State Administration of Taxation Concerning the Follow-up Control of Certain Income Tax Treatment of Enterprises
with Foreign Investment and Foreign Enterprises After Lifting the Examination and Approval Procedure for Such Treatment (Guo Shui
Fa [2003] No. 127), the house subsidies in cash as actually distributed by Ameco Beijing subject to the provisions of its Constitution
as well as the resolution of its board of directors can be taken as the salary remuneration of employees and be deducted from the
taxable income of the company in the corresponding period. For the said salary remuneration, the related individual income taxes
shall be levied in accordance with the related provisions. Beijing Air Catering Co., Ltd., which is under the same circumstance,
can enjoy the same treatment as mentioned above.

The State Administration of Taxation

September 22, 2006



 
The State Administration of Taxation
2006-09-22

 






CIRCULAR OF THE MINISTRY OF FINANCE AND PEOPLE’S BANK OF CHINA CONCERNING CONFIRMING THE QUALIFICATIONS OF THE MEMBERS OF THE CERTIFICATE GOVERNMENT BOND UNDERWRITING SYNDICATES

Circular of the Ministry of Finance and People’s Bank of China concerning Confirming the Qualifications of the Members of the Certificate
Government Bond Underwriting Syndicates

Cai Ku [2006] No. 83
September 23, 2006

The departments (bureaus) of public finance each province, autonomous region, municipality directly under the Central Government,
as well as city specifically designated in the state plan, Shanghai Headquarters, each branch and business department of the People’s
Bank of China, central sub-branch of the People’s Bank of China in provincial capital cities, central sub-branch of the People’s
Bank of China in deputy provincial cities, each commercial bank, China Postal Savings and Remittance Bureau,

In order to regulate the issuance of government bonds and promote the sound development of the government bond market, the task of
establishing certificate government bond underwriting syndicates has been accomplished according to the Measures for the Examination
and Approval of the Qualifications of the Members of Government Bond Underwriting Syndicates (Decree No. 39 of the Ministry of Finance,
People’s Bank of China and China Securities Regulatory Commission) and the Circular of the Ministry of Finance, People’s Bank of
China and China Securities Regulatory Commission on the Establishment of Certificate Government Bond Underwriting Syndicates (Cai
Ku [2006] No. 60).

By August 11, 49 institutions have submitted application materials in total, all of which satisfied the basic application conditions
and were accepted. The establishment of a certificate government bond underwriting syndicate shall abide by the principle of openness,
fairness and impartiality and take in some new members from the new applicant institutions on the basis of overall stability of the
original members. The number of members may not be more than 40. On the basis of consulting the opinions of the China Banking Regulatory
Commission, the Ministry of Finance, in collaboration with the Peoples’ Bank of China decided an establishment plan as follows:

1.

The qualifications of the 37 institutional members, which still satisfy the qualifications for the members of certificate government
bond underwriting syndicates in 2004 shall be kept.

2.

The rural credit cooperatives will not be taken into any of the certificate government bond underwriting syndicates, by the virtue
of the fact that they are being restructured towards rural commercial banks and their internal management needs to be further improved.

3.

New applicant institutions, which have no less than 100 business departments (in accordance with the figure checked by the Ministry
of Finance) and of which the net assets have reached no less than 1 billion Yuan by the end of 2005, shall be included. Under this
requirement, 3 applicant institutions are taken into this underwriting syndicate.

Subject to the aforesaid principles, the Name List of the Members of Certificate Government Bond Underwriting Syndicates (attached)
has been decided. It is hereby released.

Appendix: Name List of Members of Certificate Government Bond Underwriting Syndicates



Appendix

￿￿

Appendix:

Name List of Members of Certificate Government Bond Underwriting Syndicate

￿￿

Sequential No.

Code

Institution Name

Sequential No.

Code

Institution Name

1

1001

Industrial and Commercial Bank of China Limited

21

1025

Jinan Commercial Bank

2

1002

Agriculture Bank of China

22

1026

Qingdao Commercial Bank

3

1003

Bank of China Co., Ltd.

23

1028

Chengdu Commercial Bank

4

1004

China Construction Bank Corporation

24

1030

Xi￿￿an Commercial Bank

5

1005

Bank of Communications Co., Ltd.

25

1034

Kunming Commercial Bank

6

1006

China Citic Bank

26

1035

Harbin Commercial Bank

7

1007

China Everbright Bank

27

1037

Ningbo Commercial Bank

8

1009

Hua Xia Bank Co.,Ltd.

28

1041

Huishang Bank

9

1010

Shanghai Pudong Development Bank

29

1054

Nantong Commercial Bank

10

1011

Industrial Bank Co., Ltd.

30

1055

Changsha Commercial Bank

11

1012

China Merchants Bank Co., Ltd.

31

1059

Nanchang Commercial Bank

12

1013

Shenzhen Development Bank

32

1062

Wuxi Commercial Bank Ltd.

13

1014

China Minsheng Banking Corp., Ltd.

33

1063

Wuhan Commercial Bank

14

1015

Beijing Bank

34

1075

Dalian Commercial Bank

15

1016

Shanghai Bank

35

1084

Urumchi Commercial Bank

16

1017

Nanjing Commercial Bank

36

1100

Evergrowing Bank

17

1020

Guangdong Development Bank Co., Ltd.

37

1102

Taiyuan Commercial Bank

18

1021

Tianjing Commercial Bank

38

5008

China Postal Savings and Remittance Bureau

19

1022

Shijiazhuang Commercial Bank

39

5011

Beijing Rural Commercial Bank

20

1023

Hangzhou Commercial Bank Co., Ltd.

40

5014

Shanghai Rural Commercial Bank

12Page 1 of 2

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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