CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE PREFERENTIAL POLICY FOR INCOME TAX APPLICABLE TO THE FOREIGN-CAPITAL FINANCIAL INSTITUTIONS OUTSIDE THE SPECIAL ECONOMIC ZONES

The State Administration of Taxation

Circular of the State Administration of Taxation on the Preferential Policy for Income Tax Applicable to the Foreign-capital Financial
Institutions outside the Special Economic Zones

GuoShuiHanFa [1995] No.138

April 3, 1995

Recently, it is required whether the financial institutions such as the foreign-capital banks, branches of the foreign banks, Chinese-foreign
joint venture banks, financial companies with foreign capital and financial companies of Chinese-foreign joint venture (hereinafter
referred to as foreign-capital financial institutions) which were set up outside the special economic zones approved by the State
Council can enjoy the preferential taxation treatment which is prescribed in the Law of Income Tax of the People’s Republic of China
on Enterprises with Foreign Investment and Foreign Enterprises (hereinafter referred to as the Taxation Law) and its Rules for the
Implement. After investigation, now clarify as followed:

The other area approved by the State Council in Subparagraph 3rd of Paragraph 1 of Article 73 and Subparagraph 5th of Paragraph 1
of Article 75 in the Rules for the Implementation of the Taxation Law means the areas where the foreign-capital financial institutions
are allowed to established approved by the State Council besides the special economic zones. According to that, those enterprises
established in the stated areas that approved by the State Council can enjoy the preferential taxation treatment which is prescribed
in Subparagraph 3rd of Paragraph 1 of Article 73 and Subparagraph 5th of Paragraph 1 of Article 75 in the Rules for the Implementation
of the Tax Law.