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CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING REFUND OF ENTERPRISE INCOME TAX TO FOREIGN INVESTORS FOR REINVESTMENTS

the State Administration of Taxation

Circular of the State Administration of Taxation on Relevant Issues concerning Refund of Enterprise Income Tax to Foreign Investors
for Reinvestments

Guo Shui Han [2005] No. 1093

The bureaus of state taxes of all provinces, autonomous regions, municipalities directly under the Central Government, and cities
specifically designated in the state plan, Shenzhen Municipal Bureau of Local Taxes:

We are informed that some foreign-funded enterprises distribute the profits of the year prior to the transfer of their equities to
the transferee foreign investors after the transfer. We hereby give our notice as follows regarding the issue on the refund of enterprise
income tax to the foreign investors for reinvestments with the profits gained prior to the transfer of equities:

I.

Where a foreign investor that gains the equities of a foreign-funded enterprise by means of transfer makes reinvestment in China
after the transfer with the profit distributed by the foreign-funded enterprise prior to the transfer, the profits for such reinvestment
does not fall into the scope of the profits used for direct reinvestments as prescribed in Article 80 of the “Detailed Rules for
the Implementation of the Law of the People￿￿s Republic of China on the Income Tax of Foreign-funded Enterprises and Foreign Enterprise”,
and the foreign investor may not enjoy the relevant tax refund treatment for reinvestment with profits.

II.

Where equities are transferred at the cost price to a foreign investor from any of the following associated parties with whom it
has a direct or indirect ownership relationship or whose equities are 100% owned by an identical party, , and the said foreign investor
makes a reinvestment in China after the transfer with the profits distributed by the foreign-funded enterprise prior to the transfer,
it will not be restricted by the above Article 1 , and may enjoy the tax refund treatment for reinvestment with profits according
to the relevant provisions.

(1)

Foreign investors;

(2)

Foreign-funded enterprises specializing in investment business, which may be deemed as foreign investors under the “Circular of the
Ministry of Finance and the State Administration of Taxation on Some Taxation Issues for Foreign-funded Enterprises to Engage in
the Investment Business” (Cai Shui Zi [1994]No. 083) to enjoy tax refund treatment for reinvestment.

III.

This Circular shall go into effect as of the date of promulgation. With regard to those who have enjoyed tax refund treatment for
reinvestment prior to the said date, the tax refund will not be adjusted according to this Circular.

State Administration of Taxation

November 17, 2005



 
the State Administration of Taxation
2005-11-17

 






DETAILED RULES OF IMPLEMENTATION OF MEASURES FOR THE ADMINISTRATION OF PILOT CURRENCY BROKERAGE COMPANIES

China Banking Regulatory Commission

Detailed Rules of Implementation of Measures for the Administration of Pilot Currency Brokerage Companies Chapter I General Provisions

Chapter II Establishment of Institutions

Chapter III Administration of the Qualification for Assuming the Post of Director or Senior Manager

Chapter IV Risk Control and Supervision and Administration

Chapter V Supplementary Provisions

Chapter I General Provisions

Article 1

The present Detailed Rules are formulated according to Measures for the Administration of Pilot Currency Brokerage Companies t (hereinafter
referred to as the Measures) and the relevant provisions.

Article 2

China Banking Regulatory Commission (hereinafter referred to as the CBRC) and the dispatched offices thereof shall carry out supervision
and administration to currency brokerage companies according to the Measures and the present Detailed Rules.

Chapter II Establishment of Institutions

Article 3

An applicant who meets the requirements of Article 7 or 8 of the Measures and holds the largest proportion of shares in a currency
brokerage company that will be established shall submit the materials as prescribed in Article 13 of the Measures to the banking
regulatory bureau (an office as dispatched by the CBRC at the provincial level) where the currency brokerage company will be located
. A non- preserving legal opinion that have no conflict with the relevant Chinese laws and regulations shall be made by a lawyer
for the aforesaid materials.

Article 4

The term “currency brokerage company” as mentioned in paragraph 1, Article 7 of the Measures includes a legal-person institution
that directly engages in the currency brokerage operation or its parent company that directly controls the shares thereof.

Article 5

An applicant shall submit the application materials for establishment preparation of a currency brokerage company according to the
provisions of Article 13 of the Measures. Thereinto:

(1)

An Application for Establishment Preparation shall include such contents as the name, planned place of registration, registered capital,
planned scope of business operation, names of capital contributors and their capital contributions respectively.

(2)

An Application Form for Establishment Preparation (see Attachment I for the format), an Application for Establishment Preparation,
an Agreement on Joint Venture (or the Promoter’s Agreement) which shall be conducted by all the capital contributors (or promoters)and
signed by the legal representative and affixed with the entity seal. The proportion of capital contribution, rights and obligations
of capital contributors (or promoters) shall be clarified in the Agreement on Joint Venture.

(3)

The constitution of a currency brokerage company shall at least include the following contents: name and domicile of the company,
organizational structure, scope of business operation, registered capital, names of shareholders and amount of capital contributions,
rights and obligations of shareholders, its legal representative, organization and the formation thereof, functions and power, rules
of procedure, measures for distributing company profits, particulars of dissolution and measures for settlement.

(4)

A capital contributor within the Chinese territory shall provide a photocopy of its Business License (duplicate) (the photocopy shall
be affirmed by the administrative department for industry and commerce and shall be affixed with the seal thereof); a capital contributor
in a foreign country shall provide a photocopy of its Business License or any other financial business license, and the photocopy
shall be notarized by an organization that has been recognized by the country or region where it is located or be accredited by the
embassy (consulate) of the People’s Republic of China in the relevant country or region.

(5)

Where an overseas capital contributor is subject to the supervision of the financial regulatory body of the country or region where
it is located, an Opinion Letter of approval for the establishment of a currency brokerage company as prescribed in paragraph 5,
Article 13 of the Measures shall be issued by the financial regulatory body or the financial industrial association. And

(6)

The basic information of a capital contributor includes its name, place of registration, legal representative, photocopy of its Business
License, diagram of the organizational structure of the capital contributor and the group to which its belongs, roster of major shareholders
who make capital contribution, roster of the branches of the capital contributor as well as roster of major associated enterprises,
and business operation circumstance.

Article 6

An applicant that has obtained the license for establishment preparation of a currency brokerage company and applies for renewing
the term for establishment preparation shall submit to the banking regulatory bureau the relevant materials such as an Application
Form for Postponed (see Attachment II for the format) and a report on the application for postponed 1 months before the expiration
of establishment preparation, wherein the reasons for postponed shall be explained and the report on the application for postponed
shall bear the signatures of the legal representatives of all parties concerning capital contribution and be affixed with their entity
seals.There shall be only one renewal with an extension of no more than 3 months.

Article 7

Where the work of establishment preparation is concluded, an applicant shall submit to the banking regulatory bureau the materials
as prescribed by Article 17 of the Measures as well as the non- preserving legal opinion that have no conflict with the relevant
Chinese laws and regulations issued by a lawyer for the aforesaid materials. Thereinto:

(1)

An Application Form for Business Start-up (see Attachment III for the format) and a report on the application for business start-up
shall be issued by all the capital contributors (promoters) and bear the signature of their legal representatives and be affixed
with their entity seals.

(2)

The content of the report on the application for business start-up shall include such matters as the explanation to completion of
the work of establishment preparation, and etc.

(3)

The bylaws of started business operation and the internal risk control system, including the comprehensive, systematic and written
policies, system and procedures as formulated concerning all business operations and management of the company. And

(4)

A security testing report on the trading place, equipment and system, including the original document of inspection and acceptance
concerning its business place and the relevant facilities for operation issued by the departments of public security and fire control.

Article 8

The CBRC shall take charge of verifying the application for business start-up of a currency brokerage company as well as for its business
scope. The CBRC shall take charge of issuing the Financial Business License to wholly foreign-funded currency brokerage companies
and joint-venture currency brokerage companies. The banking regulatory bureaus shall take charge of issuing Financial Business License
to Chinese-funded currency brokerage companies.After a decision on approval for the establishment of a currency brokerage company
is made, the CBRC or the banking regulatory bureau shall issue a Financial Business License thereto within 10 days.

Article 9

The CBRC or the banking regulatory bureau shall inform a currency brokerage company to be established to go to the CBRC or the banking
regulatory bureau to collect the Financial Business License with the following materials:

(1)

The approval documents issued by the CBRC;

(2)

An Introduction Letter of a financial institution;

(3)

The legal and valid identity certification of the person who collects the Financial Business License; and

(4)

Any other material as required by the CBRC or the banking regulatory bureau.

Article 10

A currency brokerage company shall publicly show its Financial Business License, business scope as well as person-in-charge in an
eye-catching position of its business place. The CBRC and its dispatched offices shall carry out supervision and examination on the
publication according to law.

Article 11

A wholly foreign-funded currency brokerage company or joint-venture currency brokerage company that has obtained the approval of the
CBRC for its business start-up shall go to the Ministry of Commerce of the People’s Republic of China to collect the Approval Certificate
of the People’s Republic of China for Foreign-funded Enterprises with the approval documents and the Financial Business License
issued by the CBRC.

Article 12

In a currency brokerage company, 60% or more of its personnel shall have engaged in financial undertaking or the relevant business
operation. The application materials concerning the business start-up of a new currency brokerage company shall include the proportion
of the personnel who have engaged in financial undertaking or the relevant business operation among its practitioners.

Article 13

Such materials as application for establishment preparation and for business start-up that are submitted by an applicant shall be
in triplicate and the Chinese texts thereof shall function as the basis.

Article 14

The procedures for examining the establishment preparation and business start-up of a branch of a currency brokerage company as well
as the time limit of examination shall comply with those applied to the legal-person institution of a currency brokerage company.

Article 15

Where a currency brokerage company establishes a representative office, it shall submit the application materials to the banking regulatory
bureau where its representative office is to be established according to the provisions of Article 28 of the Measures. The banking
regulatory bureau shall, within 20 workdays after accepting the application materials, conclude the examination and report them to
the CBRC. The CBRC shall, within 2 months after receiving the complete application materials, make a written decision on whether
or not an approval shall be granted.

Chapter III Administration of the Qualification for Assuming the Post of Director or Senior Manager

Article 16

The directors and senior managers of a currency brokerage company include board chairman, vice board chairman, executive director,
non-executive director, general manager, deputy general manager, chief financial officer (CFO), person-in-charge of the internal
examination or inspection department, manager of its branch, chief executive director (CEO) of its representative office as well
as the personnel who bear the same functions and duties of the aforesaid posts but in different post_titles in a currency brokerage company
or who don’t assume any of the aforesaid posts but have the decision-making power in the operation and management or play an important
role in the risk control of a currency brokerage company.

Article 17

To obtain the qualification for assuming the post of director and senior manager in a currency brokerage company, a candidate shall
have sound consciousness of observing laws and regulations, be familiar with the laws, administrative regulations and rules on post
assumption and shall not have any serious illegal or rule-breaking record.Where a candidate is under any of the following circumstances,
he shall not be approved to obtain the qualification for post-assumption:

(1)

Having any record of intentional crime;

(2)

Having assumed the post of legal-person representative of an organization that has been taken over, cancelled, merged or has been
declared bankruptcy;

(3)

His qualification for assuming the post of director or senior manager has been cancelled by any supervisory institution or any other
financial regulatory body for accumulatively 10 years or more;

(4)

Having been imposed upon any other administrative punishment other than the punishment of canceling its qualification for post-assumption
by any supervisory institution or any other financial regulatory body for 3 times; or

(5)

Having engaged in any fabrication of false account, business operation that is not recorded in its account or any other activity intended
to violate the accounting system, or instigated or indulged the institution where he works to do so.

Article 18

To obtain the qualification for assuming the post of director or senior manager in a currency brokerage company, a person shall be
creditworthy, diligent and dutiful and have good personal fame.

Article 19

A currency brokerage company shall formulate clear and clarified internal policies and procedures so as to guarantee that the directors
and senior managers whom it is about to appoint or has already appointed meet the requirements for post-assumption qualification
as prescribed in the present Detailed Rules.The CBRC as well as its dispatched offices may carry out examination on the aforesaid
policies and procedures of currency brokerage companies.

Article 20

To obtain the qualification for assuming the post of director or senior manager in a currency brokerage company, a candidate shall
have the relevant knowledge, experience and capability compatible with the post to be assumed. A candidate who applies for the qualification
for assuming the post of director shall meet the following conditions:

(1)

Having a work experience for more than 5 years on law, economy, finance, financial management or any other aspect conducive to performing
the functions and duties of a director;

(2)

Being able to employ the financial statements and statistical statements of a financial institution to judge the situation of business
operation, management and risk thereof; and

(3)

Being well understand of the corporate governance structure, constitution as well as the functions and duties of the board of directors
of the company where he is to work.When applying for the qualification for assuming the post of senior manager at any level, a candidate
shall be well understand of the functions and duties of the post to be assumed, the management frame, profit-making mode, risk management
as well as the internal control system of the organization where he is to work.When applying for the qualification for assuming the
post of director or senior manager at any level, a candidate shall further meet the following conditions:

(1)

To assume the post of board chairman, executive director or general manager, shall have an academic background of university graduate
or above, the relevant work experience on financial undertaking for more than 10 years or on the relevant business for more than
15 years (in particular, work experience on finance for more than 5 years) as well as the experience of holding the post of manager
in the operation department or holding any equivalent post at or above the manager level for more than 3 years;

(2)

To assume the post of vice board chairman, deputy general manager or manager of a branch, shall have an academic background of university
graduate or above, the relevant work experience on financial undertaking for more than 5 years or on the relevant business for more
than 10 years (in particular, work experience on finance for more than 3 years) as well as the experience of holding the post of
manager in the operation department or holding any equivalent post at or above the manager level for more than 2 years;

(3)

To assume the post of CFO, shall have an academic background of university graduate or above and the relevant work experience on
financial management, accounting or auditing for more than 6 years;

(4)

To assume the post of CEO of a representative office, shall have an academic background of university graduate or above and the relevant
work experience on finance undertaking or on the relevant business for more than 3 years; and

(5)

Where a candidate fails to have an academic background of university graduate or above, he shall obtain the qualification for certified
public accountant, public registered auditor or the qualification for senior professional technical post_title relating to the post to
be assumed and a practicing experience for more than 4 years shall be added in addition.Where a candidate who has been the person-in-charge
of an organization that is taken over, cancelled or announced bankruptcy for consecutive losses or serious losses fails to prove
that he is not basically responsible for the aforesaid circumstances, the post-assumption qualification thereof shall not be verified.

Article 21

The CBRC or its dispatched office may, after inspecting and recognizing that a candidate does have the relevant knowledge, experience
and capability compatible with the post to be assumed, make a decision on properly easing the requirements for practice term limitation.

Article 22

A currency brokerage company shall report to the local banking regulatory bureau the complete application materials of post-assumption
qualification before a selected candidate assumes his post. The CBRC or its dispatched office shall, within 30 workdays as of receiving
the complete application materials, make a decision on approval or disapproval and shall reply to the currency brokerage company
in written form.

Article 23

A currency brokerage company shall submit to the local banking regulatory bureau complete paper application materials in triplicate,
which shall at least include:

(1)

A letter for approving on the qualification for a candidate to assume his post, including the statements on the post_title, functions and
duties as well as power of the new post;

(2)

A report on reviewing whether or not a selected candidate meets the requirements for post-assumption qualification according to the
internal policies and procedures prescribed in Article 19 of the present Detailed Rules, including the way, evidence and conclusion
of the reviewing.;

(3)

An Application Form for Post-assumption Qualification as filled out by a selected candidate (see Attachment IV for the specific format);

(4)

The photocopy of the identity certification of a selected candidate as well as the certification document of his academic background
(academic degree);

(5)

A statement, bearing the signature of a selected candidate, that he has not been under any circumstance prescribed by the present
Detailed Rules where the post-assumption qualification shall not be approved;

(6)

A detailed statement, bearing the signature of a selected candidate, on his practice experience;

(7)

A detailed statement, bearing the signature of a selected candidate, on his plan for performing his functions and duties; and

(8)

Any other material as required by the CBRC or the banking regulatory bureau.The aforesaid application materials mentioned in items
(1), (2) and (3) shall bear the signature of the signer authorized by the currency brokerage company or the official seal of that
company.The banking regulatory bureau may, according to the requirements of the real situation, require the relevant institution
to provide the corresponding electronic texts.

Article 24

After the banking regulatory bureau receives the application materials for post-assumption qualification and if it’s necessary for
the relevant currency brokerage company to supplement and correct the materials as submitted, the bureau shall inform the currency
brokerage company within 5 workdays. Where the banking regulatory bureau files no demurral within 5 workdays as of receiving the
application materials for post-assumption qualification, it shall be deemed that the banking regulatory bureau has accepted the application.A
currency brokerage company shall, if it’s required so, supplement and correct its application materials within the time limit as
prescribed by the banking regulatory bureau. Where any company fails to make supplementation and correction within the time limit,
the banking regulatory bureau may make a decision on refusing to accept the application materials, return them to the relevant company
as well as refuse to accept the same application of the said company within 3 months therefrom.

Article 25

The CBRC or its dispatched office may, according to the requirements of the real situation, carry out on-the-spot investigation or
have a talk with the selected candidate so as to judge whether or not he meets the requirements for post-assumption qualification
as prescribed in the present Detailed Rules.Where a talk is held, the relevant record shall be confirmed by the selected candidate
and be guaranteed the authenticity of his state . The record shall be part of the basis for the CBRC or its dispatched office to
examine the post-assumption qualification.

Article 26

Without the approval of the CBRC or its dispatched office, none of the senior managers in a currency brokerage company such as the
board chairman, vice board chairman, executive director, general manager, deputy manager, CFO, and principal of the department of
internal examination or inspection shall hold any concurrent post in any Party or government organ or post of senior manager in any
other profit-making organization within their tenure.

Article 27

The board chairman of a currency brokerage company shall not hold the concurrent post of general manager therein. A director shall
not hold the concurrent post of senior manager of any other profit-making organization that has any interest conflict with his company.

Article 28

Where any board chairman or general manager of a currency brokerage company fails to perform his functions and duties due to any reason
for 1consecutive month or more, he shall authorize other senior manager to perform the functions and duties on his behalf and shall
report it to the dispatched office of the local banking regulatory bureau for archival filing in advance. Where anyone fails to perform
his functions and duties for 3 consecutive months, he shall be replaced.

Article 29

Where any board chairman or senior manager of a currency brokerage company resigns from his company, an auditing report thereon shall
be produced by the currency brokerage company or a external auditing organization recognized in written form by currency brokerage
company and shall be affixed with the seal of the organization that produced the report .

Article 30

A currency brokerage company may issue a formal employment (appointment) document only after its selected candidate has obtained the
post-assumption qualification as approved by the CBRC or its dispatched office, and thereafter may the relevant person begin to perform
his functions and duties.A currency brokerage company shall, within 3 months after the CBRC or its dispatched office issues the approval
document of post-assumption qualification, submit the photocopy of the employment (appointment) document to the banking regulatory
bureau for archival filing.

Article 31

The other provisions on the approval, termination, daily administration and legal liabilities of post-assumption qualification of
directors and senior managers of currency brokerage companies shall be implemented according to the relevant provisions of the CBRC.

Chapter IV Risk Control and Supervision and Administration

Article 32

A currency brokerage company shall establish a comprehensive risk management system, focusing on risk control and including the following
contents:

(1)

A currency brokerage company shall establish the board of directors and the independent departments of internal examination and regulation
compatibility.

(2)

A currency brokerage company shall establish sound corporate governance and an organizational structure with reasonable work division,
clarified functions and duties and clearly specified reporting relations as well as a scientific and highly-efficient mechanism for
decision-making, incentive and restriction. And

(3)

A currency brokerage company shall, according to the provisions of the Measures, carry out its operation according to law and the
principles of impartiality, fairness, creditworthiness and confidentiality for clients, establish and improve an internal control
system and report it to the local banking regulatory bureau for archival filing.

Article 33

A currency brokerage company shall, according to the provisions of Article 46 of the Measures, improve its facilities and preserve
the complete trading information. The company shall formulate a emergency plan for any special circumstance of malfunction of communications
circuit or trading system and shall make back-up of trading information materials in a different place on a daily basis so as to
guarantee the smooth proceeding of transaction as well as the intactness and security of information materials.

Article 34

A currency brokerage company shall formulate and implement a reasonable marketing plan according to the requirements of its business
operation.

Article 35

A currency brokerage company shall carry out its business operation on a stable basis. In the case of any loss resulting from the
market situation, the company shall formulate effective measures therefor in a timely manner, adjust its operating policy and control
the corporation scale so as to cease the loss and begin to turn out a profit as soon as possible. For a currency brokerage company,
its losses in the first year shall not exceed 50% its registered capital and the total amount of losses in the first 3 years shall
not exceed 30% its registered capital. For any branch of a currency brokerage company, its losses in the first year shall not exceed
30% its working capital and the total amount of losses in the first 3 years shall not exceed 10% its working capital.

Article 36

Where a currency brokerage company or any of its branches operates at a loss which exceeds the amount as prescribed in the aforesaid
provisions of Article 35 due to the market situation, it shall report it to the CBRC or its dispatched office in a timely manner
and supplement its registered capital and working capital in a timely manner.

Article 37

A currency brokerage company shall, according to Articles 48, 49 and 50 of the Measures as well as the relevant regulatory provisions
of the CBRC or its dispatched office, report to the local banking regulatory bureau its financial statements, reports on the implementation
of all regulatory indicators as well as other materials as required by the CBRC or its dispatched office that all bear the signature
of its legal representative on a periodic basis. The legal representative of a currency brokerage company shall bear the final liabilities
for the authenticity of the aforesaid materials.

Article 38

The CBRC and its dispatched offices shall, by means of on-the-spot examination or not-on-the-spot examination, carry out an overall
examination on the implementation of the risk management system of a currency brokerage company focusing on the legal-person governance
structure and internal control system. Where any currency brokerage company fails to meet the regulatory requirements, the CBRC or
its dispatched office may require it to make rectification and correction, suspend part of or all of its business operation or stop
its business for rectification.The CBRC and its dispatched offices may designate any intermediary organ that has the relevant qualifications
to conduct on-the-spot examination on a currency brokerage company.

Chapter V Supplementary Provisions

Article 39

The term “currency brokerage operation” refers to the business operation as prescribed in Articles 33 and 34 of the Measures.

Article 40

The present Detailed Rules shall come into force as of the day of promulgation and the power to interpret it shall remain with the
CBRC.

China Banking Regulatory Commission

November 8, 2005



 
China Banking Regulatory Commission
2005-11-18

 






NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE PREPAID VALUE-ADDED TAX FOR INCREASING THE PURCHASE OF SPECIAL VALUE-ADDED TAX INVOICE BY THE GENERAL VALUE-ADDED TAX PAYER IN THE TUTORIAL PERIOD

State Administration of Taxation

Notice of the State Administration of Taxation on Relevant Issues concerning the Prepaid Value-added Tax for Increasing the Purchase
of Special Value-added Tax Invoice by the General Value-added Tax Payer in the Tutorial Period

Guo Shui Han [2005] No. 1097

Bureaus of State Taxes in all provinces, autonomous regions, municipalities under direct control of the Central Government, and cities
specially designated in the state plan:

It is recently reflected by some enterprises that the capital is seriously tied up when the general value-added tax payers (hereafter
referred to as the taxpayers) in the tutorial period prepay the value-added tax case-by-case in increasing the purchase of special
value-added tax invoice. This notice is hereby given on relevant issues in order to further facilitate the taxpayers.

I.

The arrangement of prepaying value-added tax by the taxpayer in increasing the purchase of special value-added tax invoice shall still
be effective. The prepaid value-added tax may be credited against the payable tax of the period concerned; where the prepaid value-added
tax after being credited still has balance, it shall be credited case-by-case while the taxpayer increases the purchase of the special
value-added tax invoice in the next period.

II.

The taxation authorities in charge shall strengthen the examination work of crediting the taxpayer’s prepaid value-added tax.

i.

Where the taxpayer wants the prepaid value-added tax to be credited, he/she shall himself/herself calculate the amount of tax to be
credited and apply for it to the taxation authorities in charge.

ii.

Upon receiving the application and after ascertaining the situation of tax paid by the taxpayer and the issuing of the special value-added
tax invoice is free of error, the taxation authorities in charge may directly issue special value-added tax invoice without charging
the prepaid tax any more to the tax payer whose balance of prepaid value-added tax is more than prepaid value-added tax for this
time; where the taxpayer’s prepaid value-added tax for this time is more than the balance of the prepaid value-added tax, the taxation
authorities in charge shall issue special value-added tax invoice to him/her after he/she prepays on the basis of the balance.

III.

The taxation authorities in charge shall, within the first month after the end of the taxpayer’s tutorial period, return once and
for all to the taxpayer the balance of the prepaid value-added tax arising from his/her increasing the purchase of the special value-added
tax invoice.

The State Administration of Taxation

November 18, 2005



 
State Administration of Taxation
2005-11-18

 






ANNOUNCEMENT NO.78, 2005 OF THE MINISTRY OF COMMERCE, THE MINISTRY OF AGRICULTURE, THE GENERAL ADMINISTRATION OF CUSTOMS, THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA

Ministry of Commerce, Ministry of Agriculture, General Administration of Customs, General Administration of Quality Supervision, Inspection
and Quarantine

Announcement No.78, 2005 of the Ministry of Commerce, the Ministry of Agriculture, the General Administration of Customs, the General
Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China

[2005] No. 78

In accordance with related regulations of Foreign Trade Law of PRC and Administrative Regulations on Commodity Import and Export of
PRC, related matters are now announced as follows for the purposes of preventing spread of bird flu epidemic and protecting health
of people and production security of stock raising industry.

1.

Suspending import of poultry and poultry products form counties of epidemic-stricken counties such as Thailand, Vietnam, Indonesia,
Cambodia, Japan, the Democratic People’s Republic of Korea, Romania, Croatia, Kazakhstan, South Africa, Mongolia, Turkey, Russia
and Sweden. As from today, departments of quality inspection will not issue Declared Form of Import Commodity to poultry and poultry
products form above-mentioned epidemic-stricken counties until release of another announcement for resume of the import. Customs
will not accept import declarations of poultry and poultry products with no Declared Form of Import Commodity.

2.

All local administrative commercial sections will suspend release of Automatic Import License of meet chook and its products (all
meat chook products listed in appendix of List of Commodities under Administration of Automatic Import License) from above-mentioned
countries.

The announcement takes effect as form release. The poultry and poultry products import from new bird flu epidemic countries should
be implemented in line with the announcement also.

Ministry of Commerce

Ministry of Agriculture

General Administration of Customs

General Administration of Quality Supervision, Inspection and Quarantine

Oct 28, 2005



 
Ministry of Commerce, Ministry of Agriculture, General Administration of Customs, General Administration of Quality
Supervision, Inspection and Quarantine
2005-10-28

 






CIRCULAR BY THE MINISTRY OF LABOR AND SOCIAL SECURITY, THE MINISTRY OF COMMERCE, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON PERMITTING HONG KONG/MACAO SERVICE PROVIDERS TO ESTABLISH SOLELY-FUNDED JOB INTERMEDIARY INSTITUTIONS IN THE MAINLAND

Circular by the Ministry of Labor and Social Security, the Ministry of Commerce, the State Administration for Industry and Commerce
on Permitting Hong Kong/Macao Service Providers to Establish Solely-funded Job Intermediary Institutions in the Mainland

No. 26 [2005] of the Ministry of Labor and Social Security

The bureaus of labor and social security, commerce administrative departments and administrative departments for industry and commerce
of all provinces, autonomous regions or municipalities directly under the Central Government,

The mainland has signed the Supplementary Agreement on Mainland/Hong Kong Closer Economic Partnership Arrangement and the Supplementary
Agreement on Mainland/ Macao Closer Economic Partnership Arrangement (hereinafter referred to as the CEPA) respectively with Hong
Kong and Macao on October 27 and October 29, 2004, which have come into force on January 1, 2005. In order to implement the CEPA,
we hereby make the following notices on relevant issues:

1.

Hong Kong service providers and Macao service providers may establish solely-funded job intermediary institutions with a minimum
registered capital of 125, 000 U.S. dollars.

The Hong Kong service providers and Macao service providers as mentioned in the present Circular shall conform to the definition of
the “service provider” in the CEPA and satisfy the requirements of the relevant provisions.

2.

The other procedures for Hong Kong service providers and Macao service providers to establish solely-funded job intermediary institutions
in the Mainland shall be executed according to the Interim Provisions on the Establishment of Sino-foreign Equity Joint and Sino-foreign
Contractual Job intermediary institutions.

The Ministry of Labor and Social Security

The Ministry of Commerce

The State Administration for Industry and Commerce

October 28, 2005



 
the Ministry of Labor and Social Security, the Ministry of Commerce, the State Administration for Industry and Commerce
2005-10-28

 






NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE PROMOTION OF THE STATISTICS AND SUPERVISION SYSTEM OF EXTERNAL DEBT (BANK EDITION) AND THE ADJUSTMENT OF THE REQUIREMENT OF SUBMITTING DATA OF EXTERNAL DEBT

State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on the Promotion of the Statistics and Supervision System of External Debt
(Bank Edition) and the Adjustment of the Requirement of Submitting Data of External Debt

Hui Fa [2005] No. 78

October 28, 2005

Branches of the State Administration of Foreign Exchange in all provinces, autonomous regions, municipalities under direct control
of the Central Government, Branches in the Cities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all designated Chinese-funded
foreign exchange banks:

In order to further improve the accuracy and timeliness of the statistics of external debt, the State Administration of Foreign Exchange
will in the near future promote nationwide the Statistics and Supervision System of External Debt (Bank Edition). The notice is hereby
given on relevant issues concerning the promotion program and the requirement of submitting data of external debt.

I.

As of November 1, 2005, such Chinese-funded banks as Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of
China, Construction Bank of China, the State Development Bank, the Agricultural Development Bank of China, the Export-Import Bank
of China, CITIC Industrial Bank, China Everbright Bank, Huaxia Bank China Minsheng Banking Corp., Ltd. shall submit the data of external
debt by logging on the Statistics and Supervision System of External Debt (Bank Edition).

II.

Other headquarters of Chinese-funded banks (excluding City Commercial Banks, Urban Credit Cooperatives and Rural Credit Cooperatives)
and the foreign-funded banks shall, as of December 1, 2005, submit the data of external debt by logging on the Statistics and Supervision
System of External Debt (Bank Edition).

III.

The mode of submitting the data of external debt for the City Commercial Banks, the Urban Credit Cooperatives, the Rural Credit Cooperatives
and branches of all the Chinese-funded banks shall remain unchanged.

IV.

After the banks adopt the Statistics and Supervision System of External Debt (Bank Edition), they shall daily submit the data of external
debt case-by-case (excluding the Usance Letter of Credit and the non-resident account). The banks shall, before the end of every
work day, record the newly-signed external debts and the external debts experiencing changes in day concerned into the Statistics
and Supervision System of External Debt (Bank Edition).

V.

The usance letter of credit shall, depending on different currencies and time limits, be reported on a consolidated basis. The usance
letter of credit of the same currency, whose time limit is within one year, shall be reported on a consolidated basis; and the usance
letter of credit of the same currency, whose time limit is more than one year, shall be reported on a consolidated basis.

VI.

The non-resident account shall, depending on different currencies, be reported on a consolidated basis, and be recorded as external
debt of bank (within one month).

VII.

This notice shall go into effect as of the date of promulgation. Upon receiving this notice, all the Branches shall promptly transmit
it to the Sub-branches and the foreign-funded banks under their jurisdiction. If any question is encountered in the implementation
of this notice, please contact the Department of Capital Account Management of the State Administration of Foreign Exchange.

Contact Person: Zhou Haiwen

Contact Telephone Number: 010-68402366



 
State Administration of Foreign Exchange
2005-10-28

 






CIRCULAR OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE PROVISIONAL MEASURES FOR ADMINISTRATION OF SPECIAL VENTURE CAPITAL FOR THE EXPLORATION OF OVERSEAS MINERAL RESOURCES

2005103120051031Ministry of Financeepdf/e04881.pdfKOverseas, mineral resources, venture, exploration, special capital, go global, mineral enterprisee04881Circular of the Ministry of Finance on Printing and Distributing the Provisional Measures for Administration of Special Venture Capital
for the Exploration of Overseas Mineral ResourcesCai Jian [2005] No.637Relevant central entities, financial departments (bureaus) of all the provinces, autonomous regions, municipalities directly under
the Central Government and the cities specifically designated in the state plan:For the purpose of strengthening the administration of special venture capital for the exploration of overseas mineral resources,
enhancing the capital profit, we formulated the Provisional Measures for Administration of Special Venture Capital for the Exploration
of Overseas Mineral Resources, in accordance with the requirements of budget management and the provisions of relevant laws and regulations
of the state. It is hereby printed and distributed to you, please implement it accordingly.Annex: Provisional Measures for Administration of Special Venture Capital for the Exploration of Overseas Mineral ResourcesMinistry of FinanceOctober 31, 2005Annex:Provisional Measures for Administration of Special Venture Capital for the Exploration of Overseas Mineral ResourcesChapter I General PrinciplesArticle 1 These measures are formulated for the purposes of implementing ￿￿Go Abroad￿￿ strategy, encouraging and guide the geological exploring
units and mining enterprises to go abroad for exploring and developing mineral resources (except petroleum and natural gas, the same
below), tightening up the administration of special venture capital for the exploration of overseas mineral resources (￿￿special
capital￿￿ for short below), and improving funds returns.Article 2 Special capital means subsidies and funds of interest discount specially used for geological exploring units and mining enterprises
to go abroad for mineral resources exploring and developing projects that are in short supply in China and national economy needs
badly.Article 3 Mineral enterprises in terms of these measures means the enterprises relying mainly on development and utilization of mineral products,
exploring of mineral resources, mining and ore dressing within the business range registered for record in industrial and commercial
administration.Article 4 Special capital is preferentially arranged for the exploring with good metallogenic conditions or background and exploring and developing
projects that are rich in resource reserves, have better exploring and developing conditions, striking anticipated benefit, perfect
works in early stage and invested correspondingly by relative units of Central Government and local government.Article 5 Special capital is managed project by project, special fund for special use. No unit and individual could keep back, forcibly occupy
and misappropriate it.Chapter II QualificationsArticle 6 Applying for special capital must meet following requirements:1.The implementation of the project should accord with national laws and industrial policies, laws of the country where the project
is executed and standard of international law, should not harm national sovereignty, safety and public interests;2.Investing in enterprises abroad should be approved by the Ministry of Commerce or provincial competent commercial administration;
mineral resource developing project abroad should be approved or gone through the record registration formalities by National Development
and Reform Commission or provincial development and reform authority or gone through the record formalities in the Ministry of Commerce
and the Ministry of Land and Resources;3.The executed project has obtained the license (or permission) for exploring and developing mineral resources issued by the competent
authority for mineral resources of the country where the project is executed. The plan for executing the project has been approved
by the country where the project is executed. The contract or agreement (initialed text) should be signed for the joint venture and
cooperated project with foreign enterprises;4.The executed project should meet the requirements of raw materials, fuel, power, main equipment, communications and transport and
ect.5.The mineral area where the project is executed has excellent inside and outside conditions. The explored and developed mineral resources
have good market prospects and striking economic benefit;6.Domestic unit has mining right of the project exclusively or together with foreign joint venture or cooperated unit;7.Main mineral resources (or roughing products) explored in the developing project should be transported to home;8.Other requirements requested by the Ministry of Finance.Article 7 The materials that should be provided for applying for special capital:1.Copy of legal person credentials of the enterprises and public institutions or copy of the duplicate of industrial and commercial
license;2.Whoever executes exploring project should provide qualification certificate for geological exploring. Whoever executes developing
project should provide the certificate of corporate body registered in the country where the project is executed approved by the
state;3.License of mineral resources exploring or mining issued by competent administration of mineral resources of the country where the
project is executed. Whoever invests jointly or cooperates with foreign enterprises should provide the copy of signed contract or
agreement (initialed text);4.Approval Certificate for Investment Abroad of the People￿￿s Republic of China issued by the Ministry of Commerce (to Central enterprises)
or by provincial competent commercial department (to other enterprises);5.Written approval documents or record certificate for investment project abroad issued by National Development and Reform Commission
or provincial development and reform authority;6.Record Form for Mineral Resources Developing Project Abroad that has been put on record in the Ministry of Commerce and Ministry of
Land and Resources;7.Written comments on the reported project issued by our economic and commercial counselor office in the country where the project is
executed;8.Other materials requested by Ministry of Finance.Ministry of Finance may readjust the qualification certificates to be provided according to the needs of the state policy.Chapter III Management of BudgetArticle 8 The state shall support the project that has been made pre-survey and general survey in the early stage in the form of financial subsidies.
Financial subsidies are mainly used for looking for mines.The state shall support the project that is in the stage of detailed investigation, exploring and mining in the form of providing
financial interest discount of domestic bank loan.Article 9 Ministry of Finance shall release guide to apply for special capital project according to relative requirements of ￿￿Go Abroad￿￿ strategy
of the state.Article 10 Geological exploring units and mining enterprises applying for special capital should draw up project feasibility report, project
design and expenditure budget.The projects executed by Central enterprises and public institutions and the units directly affiliated to Central enterprises and
public institutions should be reported directly to the Ministry of Finance after examination and gathering together of Central competent
administration or Central enterprises and public institutions. The project executed by other enterprises and public institutions
should be reported to the Ministry of Finance after the examination and gathering together of Financial Departments (Bureaus) of
all provinces, autonomous regions, municipalities directly under the Central government.Article 11 The Ministry of Finance shall organize relative experts to give comments on and examine the project application materials submitted
by Central competent administrations, Central enterprises and public institutions and the locality.Article 12 The Ministry of Finance shall release appropriation budget according to experts￿￿ examination and financial power of this year.Special capital shall be appropriated in accordance with relative provisions of rules for administration of financial national treasury.Article 13 Financial management and account settlement of special capital should be carried out according to current regulations of the state
about Chinese invested or Chinese-foreign joint venture enterprises abroad.Chapter IV Supervision and ExaminationArticle 14 Financial authorities at all levels should make necessary supervision and examination on the use of special capital and evaluate the
real achievements of the use of special capital.Article 15 The financial authorities at all levels should establish supervision and constraint mechanism for managing the use of special capital,
establish project tracking and feedback system, for handling and correcting the problems in use of the funds in time and serious
issues should be reported to the Ministry of Finance.Article 16 The competent unit responsible for the project should improve the administration of special capital, strictly abide by financial accountant
rules and cooperate actively relative organs to make supervision and examination.Article 17 The unit undertaking the project should submit the information of project progress and use of the funds to the financial authority
at the same level. The competent unit responsible for the project should arrange check and acceptance after fulfilling the project
in accordance with requirements.Article 18 The competent units responsible for the project and undertaking the project and corresponding persons who have caused the special
capital held back, embezzled or losses because of malfeasance or other illegal activities should be ascertained responsibilities
in accordance with Punishment and Disciplinary Regulations for Illegal Financial Activities. Whoever commits a crime should be transferred
to judicial organ for their criminal responsibilities.Chapter V Supplementary ArticlesArticle 19 These measures shall come into effect as of October 31, 2005.



 
Ministry of Finance
2005-10-31

 






MEASURES GOVERNING THE EXTERNAL MARKS OF AUTOMOBILE PRODUCTS

National Development and Reform Commission

Order of the National Development and Reform Commission

No. 38

In accordance with relevant laws and regulations of the state and the relevant provisions of the “Policies on Development of the Automobile
Industry”, the “Measures Governing the External Marks of Automobile Products”, which were deliberated and adopted at the working
meeting of the directors of the National Development and Reform Commission, are hereby promulgated, and shall come into force as
of February 1, 2006.

Director General of the National Development and Reform Commission, Ma Kai,

November 3, 2005

Measures Governing the External Marks of Automobile Products

Chapter I General Provisions

Article 1

These Measures are formulated according to the relevant laws and regulations for the purpose of regulating the external marks of the
products of automobile manufacturing enterprises, protecting the lawful rights and interests of consumers, propelling automobile
manufacturing enterprises on enhancing their consciousness of quality and brand, and carrying out the “Policies on Development of
the Automobile Industry”.

Article 2

“External marks of automobile products” as mentioned in these Measures shall refer to the registered commodity trademarks, names of
manufacturing enterprises, places of origin, names of vehicle types, models, displacement of engines, gear-box types, driving modes,
and other marks reflecting the features of vehicles.

Article 3

These Measures shall be applied to the automobiles manufactured within the territory of China and sold oriented to the domestic
markets. No unified requirements are set forth for the automobiles manufactured within the territory of China and sold oriented
to the foreign markets and the imported automobiles.

Article 4

The competent department of automobile industry shall be responsible for regulating and administering the indication of external
marks of automobile products.

Chapter II Indication of Marks

Article 5

On an eye-catching position on the external surface of the front part of the vehicle body of a domestically manufactured automobile,
there shall be installed at least a permanently existing commodity trademark.

Article 6

On a distinctive position of the tail of the vehicle body (on the surface of the rear part of the vehicle body above the bumper) of
a domestically manufactured passenger vehicle, commercial vehicle or trailer the name of the automobile manufacturing enterprise,
the commodity trademark and the name of the vehicle type, etc. shall be indicated. If a figurative commodity trademark needs to be
indicated, it shall be affixed in the middle of the external surface of the tail of the vehicle body (except for any vehicle whose
tail of the vehicle body is attached with a spare tire or whose rear part of the vehicle body is installed with a door opening towards
left and right).

If all parties of a joint venture automobile manufacturing enterprise intends to make combined indication with the shortened form
of their name in Chinese characters or with the Chinese character trademarks they has registered, the name of the manufacturing
enterprise shall be no longer needed to indicate .

Article 7

A special vehicle using a purchased chassis shall keep the commodity trademark, the name of the manufacturing enterprise, etc. of
the original chassis. Meanwhile, the information of the special vehicle manufacturing enterprise such as its name, the commodity
trademark, the name of the vehicle type, etc. shall be indicated.

Article 8

The commodity trademark of the manufacturing enterprise or the enterprise name shall be indicated on the product of automobile parts
and components . The specific method of indication shall be decided by the enterprise itself.

Chapter III Requirements on Marks

Article 9

The name of an automobile manufacturing enterprise shall be indicated with Chinese characters. For the type of a vehicle whose length
is more than 4.2 m, the height of its Chinese characters shall not be under 25mm; while for the type of a vehicle whose length is
no more than 4.2 m, the height of its Chinese characters shall not be under 20mm. The name of the manufacturing enterprise and the
literal trademark of commodity must be indicated with the same material.

Article 10

The name of a vehicle type may be indicated with either Chinese characters or English letters, and the height of the characters or
letters shall not be under 15mm.

Article 11

The contents indicated on the external mark of an automobile product shall be consistent with those indicated on the scutcheon of
the vehicle product, the leave factory conformity certificate of the complete vehicle and other similar documents.

Article 12

Among the marks on the front part and rear part of the body of a passenger vehicle or commercial vehicle, the name of the automobile
manufacturing enterprise, the commodity trademark and the name of the vehicle type, etc. shall be permanently kept, and shall not
be coated by means of spraying paints or be stuck with non-drying glue.

Chapter IV Supplementary Provisions

Article 13

Automobiles as mentioned in these Measures shall refer to the vehicles as defined in Clause 2.1 of the national standards (GB/T3730.1–2001),
including passenger vehicles (as defined in Clause 2.1.1) and commercial vehicles (as defined in Clause 2.1.2), among which, the
vehicles as defined in Clauses 2.1.1.11, 2.1.2.3.5, and 2.1.2.3.6 shall be special automobiles; the trailers as mentioned therein
shall refer to the vehicles as defined in Clause 2.2 of the national standards (GB/T3730.1 –2001).

Article 14

The “name of an automobile manufacturing enterprise” as mentioned in these Measures shall refer to the name of automobile manufacturing
enterprise registered in the administrative department for industry and commerce or the name of automobile manufacturing enterprise
published in the “Announcement”.

When an enterprise name is indicated, either the full or the shortened form of name may be adopted. When the shortened form of an
enterprise name is adopted, it shall be reported for archival filing at the time when f applying for the “Announcement of Road
Motor Vehicle Manufacturing Enterprises and Their Products”.

The share-controlling subsidiary company of a domestic automobile manufacturing enterprise (group) may, pursuant to the requirement
of the parent company, indicate the enterprise name or the shortened form thereof.

Article 15

“Permanently kept” as mentioned in these Measures shall refer to that is not allowed to aging or naturally fall off within the service
life of product.

Article 16

Starting from February 1, 2006, any new product for declaring the “Announcement of Road Motor Vehicle Manufacturing Enterprises
and Their Products” (hereinafter referred to as “Announcement”) must conform to these Measures, otherwise the said product shall
not be permitted to be published on the “Announcement”.

Article 17

Automobile manufacturing enterprises shall adjust the external marks on the vehicle types and vehicle bodies listed in the “Announcement”
according to the provisions of these Measures as soon as possible. From May 1, 2006, all vehicle types listed in the “Announcement”
shall meet the requirements of these Measures. Any vehicle type that fails to meet the said requirements shall be suspended from
publishing in the “Announcement”.

Article 18

These Measures shall come into force as of February 1, 2006.



 
National Development and Reform Commission
2005-11-03

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ENTRY INTO FORCE AND IMPLEMENTATION OF THE AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION BETWEEN THE GOVERNMENTS OF CHINA AND GEORGIA

the State Administration of Taxation

Circular of the State Administration of Taxation on the Entry Into Force and Implementation of the Agreement for the Avoidance of
Double Taxation between the Governments of China and Georgia

Guo Shui Fa [2005] No. 176

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

The Chinese government and the government of the Republic of Georgia signed the Agreement for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income and property in Beijing on June 22, 2005. The Agreement has been
confirmed by both governments by exchanging notes through their respective foreign affairs departments on August 9, 2005 and October11,
2005 respectively, and has now completed the necessary legal procedures for entering into force. According to the provisions of Article
29 of the Agreement, the Agreement will enter into force on November 10, 2005, and will be implemented as of January 1st, 2006.
The State Administration of Taxation has distributed the text of the Agreement to you by promulgating “Letter of the State Administration
of Taxation [2005] No. 114” on July 6, 2005. Please comply with and implement it accordingly.

The State Administration of Taxation

November 4, 2005



 
the State Administration of Taxation
2005-11-04

 






NOTICE OF SAT AND SAFE ON PUTTING INTO TRIAL USE THE REGIME OF DECLARING TAX REIMBURSEMENT FOR EXPORT WITHOUT PROVIDING THE PAPER FORM OF COLLECTION VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

The State Administration of Taxation, the State Administration of Foreign Exchange

Notice of SAT and SAFE on Putting into Trial Use the Regime of Declaring Tax Reimbursement for Export without Providing the Paper
Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange

Guo Shui Han [2005] No. 1051

Bureaus of State Taxes and Branches of the State Administration of Foreign Exchange in all provinces, autonomous regions, municipalities
under direct control of the Central Government, and cities specially designated in the state plan:

The Submission and Examination System via Internet for the Collection Verification and Writing-off of Export Proceeds in Foreign Exchange
has recently been launched by the State Administration of Foreign Exchange in order to simply the formalities in collection verification
and writing-off of export proceeds in foreign exchange and to facilitate trade. And in order to ameliorate the transition of the
regime in collection verification and writing-off of export proceeds in foreign exchange, the State Administration of Taxation and
the State Administration of Foreign Exchange decide to select several export enterprises in Guangdong, Liaoning and Beijing to put
into trail use the new regime of declaring tax reimbursement for export without providing the special couplet of tax reimbursement
for export of the form of collection verification and writing-off of export proceeds in foreign exchange, and of the taxation authorities
examining tax reimbursement for export using the electronic data in collection verification and writing-off of export proceeds in
foreign exchange. And the relevant issues concerning this are hereby notified as follows:

I.

The Bureaus of State Taxes and Branches of the State Administration of Foreign Exchange in the areas where this policy is put into
trial use, shall do well the work hereof in accordance with The Measures of the State Administration of Taxation and the State Administration
of Foreign Exchange for Putting into Trial Use in Several Export Enterprises in Guangdong, Liaoning and Beijing the Regime of Declaring
Tax Reimbursement for Export without Providing the Paper Form of Collection Verification and Writing-off of Export Proceeds in Foreign
Exchange (please refer to the annex).

II.

The measures for the administration of tax reimbursement for export shall remain unchanged in the areas where this policy is not put
into trial use.

III.

The Bureaus of State Taxes and Branches of the State Administration of Foreign Exchange in the areas where this policy is put into
trial use, shall, during the work hereof, closely cooperate with each other and timely sum up the experience so as to advance the
work hereof, and report the questions encountered during the work. And other areas where the Submission and Examination System via
Internet for the Collection Verification and Writing-off of Export Proceeds in Foreign Exchange has already been carried out, may,
with reference to the spirit of this notice, actively study the operational issues in local areas. The State Administration of Taxation
and the State Administration of Foreign Exchange will study the work of carrying-out nationwide in accordance with the situations
of putting into trial use this policy and with the carrying-out in every area.

Annex: The Measures of the State Administration of Taxation and the State Administration of Foreign Exchange for Putting into Trial
Use in Several Export Enterprises in Guangdong, Liaoning and Beijing the Regime of Declaring Tax Reimbursement for Export without
Providing the Paper Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange

The State Administration of Taxation

the State Administration of Foreign Exchange

November 4, 2005 Annex:The Measures of the State Administration of Taxation and the State Administration of Foreign Exchange for Putting into Trial Use in
Several Export Enterprise in Guangdong, Liaoning and Beijing the Regime of Declaring Tax Reimbursement for Export without Providing
the Paper Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange

In order to advance the Submission and Examination System via Internet for the Collection Verification and Writing-off of Export Proceeds
in Foreign Exchange, and to optimize the administration of tax reimbursement for export, the State Administration of Taxation and
the State Administration of Foreign Exchange decide to select 30 export enterprises in Guangdong Province, 20 in Liaoning Province
and those in the Economy and Technology Development Zone in the Xicheng District of Beijing (hereafter referred to as the pilot enterprises,
and please refer to Annex 4 for the name list of the pilot enterprises in the Provinces of Guangdong and Liaoning) to put into trial
use the new regime of declaring tax reimbursement (exemption) for export without providing the special couplet of tax reimbursement
for export of the form of collection verification and writing-off of export proceeds in foreign exchange (hereafter referred to as
the Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange). And the relevant issues concerned is
hereby notified as follows:

I.

Where the pilot enterprises declare enter out of goods as of September 1, 2005 (the export date specified in the Goods Declaration
for Exportation (specially used for tax reimbursement for export) shall prevail)), the foreign exchange authorities in charge need
not, after the pilot enterprises go through the procedure of collection verification and writing-off of export proceeds in foreign
exchange at the foreign exchange authorities in charge, affix the seal of “the collection of export proceeds in foreign exchange
has been verified and written off” on the Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange.
Where the pilot enterprises apply for tax reimbursement (exemption) for export goods to the taxation authorities in charge, they
need not provide the Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange.

II.

The Bureaus of State Taxes and Branches of the State Administration of Foreign Exchange at the provincial level in the areas where
this policy is put into trial use, shall, in accordance with the local Transmission Program of Electronic Data of Collection Verification
and Writing-off of Export Proceeds in Foreign Exchange (hereafter referred to as the Transmission Program) which has been filed to
the State Administration of Taxation and the State Administration of Foreign Exchange for record, organize and carry out the related
works of electronic data transmission.

The Transmission Program shall place stress on the safety, secrecy, accuracy and timeliness of the transmission of electronic data,
and the data transmission shall be in conformity with the data interface standard of the Examination System for Tax Reimbursement
for Export, and a system of account checking-up between the two sides shall be established.

The Bureaus of State Taxes at the provincial level in the areas where this policy is put into trial use shall formulate mechanisms
and management measures governing the transmission of electronic data within the local taxation system so as to ensure the safety
of the electronic data.

III.

The Branches of the State Administration of Foreign Exchange at the provincial level in the areas where this policy is put into trial
use shall, in accordance with the Transmission Program, daily transmit to the Bureaus of State Taxes at the provincial level the
electronic data of collection verification and writing-off of export proceeds in foreign exchange of the pilot enterprises (including
the verified and written-off electronic data and the overdue unverified and unwritten-off electronic data, etc.), and periodically
provide, in accordance with the bilaterally-decided time limit and means of transmission, the Electronic Data Book of the Verified
and Written-off Collection of Export Proceeds in Foreign Exchange (specially used for tax reimbursement for export) (please refer
to Annex 1), which serves as the evidence for handling tax reimbursement (exemption) for export goods or proving the electronic data.

Whereas the Bureau of State Taxes of Beijing and the Beijing Office of the State Administration of Foreign Exchange have adopted an
encryption system of electronic sealing for the electronic data of collection verification and writing-off of export proceeds in
foreign exchange in the Transmission Program, they may need not provide in paper form the Electronic Data Book of the Verified and
Written-off Collection of Export Proceeds in Foreign Exchange (specially used for tax reimbursement for export).

IV.

In accordance with Article 2 of the Notice of the State Administration of Taxation on Relevant Issues concerning the Administration
of Tax Reimbursement (Exemption) for Export Goods (Guo Shui Fa [2004] No. 64), where the pilot enterprises declare tax reimbursement
(exemption) for export goods and the settlement of foreign exchange is postdated, the electronic data of collection verification
and writing-off of export proceeds in foreign exchange may temporally be exempt from the examination of the taxation authorities;
in case that the electronic data of collection of export proceeds in foreign exchange of the pilot enterprises have not yet been
verified and written-off in 180 days as of the export declaration date (the export date specified in the Goods Declaration for Exportation
(specially used for tax reimbursement for export) shall prevail)), Article 5 of this Notice shall be applied to deal with it; in
case that the pilot enterprise is in any one of the 6 circumstances listed in Article 2 of the Document Guo Shui Fa [2004] No. 64,
the taxation authorities shall handle tax reimbursement (exemption) only after they conduct checking-ups between the tax reimbursement
data declared by the pilot enterprise and the electronic data of the verified and written-off collection of export proceeds in foreign
exchange.

The taxation authorities, while examining tax reimbursement for export, shall pay attention to the conformity between the Serial Number
of the Form of Collection Verification and Writing-off of Export Proceeds in Foreign Exchange and the Approval Code of the Goods
Declaration for Exportation.

V.

The electronic data of collection of export proceeds in foreign exchange of the pilot enterprises have not been verified and written-off
after they declared tax reimbursement (exemption) for export goods.

(1)

Where the pilot enterprises do not receive the electronic data transmitted by the foreign exchange authorities in the time limit of
5 work days prescribed in Document Guo Shui Fa [2004] No. 64 after they provided within paper the Form of Collection Verification
and Writing-off of Export Proceeds in Foreign Exchange, the taxation authorities in charge shall issue to the pilot enterprises the
Enquiry Notice for No Electronic Data of Verified and Written-off Collection of Export Proceeds in Foreign Exchange (hereafter referred
to as the Enquiry Notice, and please refer to Annex 2). The pilot enterprises shall, within 15 work days after receiving the Enquiry
Notice, provide the taxation authorities in charge with the Attestation of the Collection of Export Proceeds in Foreign Exchange
Having Been Verified and Written-off (hereafter referred to as the Attestation, please refer to Annex 3) issued by their foreign
exchange authorities in charge.

(2)

The pilot enterprises may enquire, with the Enquiry Notice and at the foreign exchange authorities in charge, the situations of verification
and writing-off of collection of export proceeds in foreign exchange. And as regard to the verified and written-off collection of
export proceeds in foreign exchange, the foreign exchange authorities shall, within 5 work days as of the enquiry day, issue to the
pilot enterprises the Attestation of Verification and Writing?Coff, and retransmit, on the day after the issuing of the Attestation
(postponed in case of the legal festivals), the electronic data of the verified and written-off collection of export proceeds in
foreign exchange.

(3)

The taxation authorities in charge of the pilot enterprises shall examine the Attestation provided within the prescribed time limit
by the enterprises hereof and their electronic data, and handle for them the business of tax reimbursement (exemption) after acknowledging
the electronic data is free of error.

(4)

Where the pilot enterprises fail to provide the Attestation within the prescribed time limit or the Attestation is not free of error,
the taxation authorities in charge shall not handle for the enterprises hereof the business of tax reimbursement (exemption) for
export goods, and shall recover those handled businesses and regard it as goods for home use to be taxed in accordance with the related
provisions.

VI.

The measures of administration of tax reimbursement (exemption) for export goods for the enterprises where the new regime is not put
into trail use shall remain unchanged.

VII.

This measure shall go into effect as of November 11, 2005.

Annexes:

1.

The Electronic Data Book of the Verified and Written-off Collection of Export Proceeds in Foreign Exchange (specially used for tax
reimbursement for export).(omitted)

2.

The Enquiry Notice for No Electronic Data of Verified and Written-off Collection of Export Proceeds in Foreign Exchange(omitted)

3.

The Attestation of the Collection of Export Proceeds in Foreign Exchange Having Been Verified and Written-off(omitted)

4.

The Name List of the Pilot Enterprises in the Provinces of Liaoning and Guangdong(omitted)



 
The State Administration of Taxation, the State Administration of Foreign Exchange
2005-11-04

 






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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