CIRCULAR OF MOF AND SAT CONCERNING THE MEASURES OF COLLECTION BEFORE RETURN FOR THE VAT, BUSINESS TAX AND CONSUMPTION TAX RELATED TO POLICY ON CITY MAINTENANCE AND CONSTRUCTION TAX AND EDUCATIONAL SURCHARGE

the Ministry of Finance, the State Administration of Taxation

Circular of MOF and SAT concerning the Measures of Collection before Return for the VAT, Business Tax and Consumption Tax related
to Policy on City Maintenance and Construction Tax and Educational Surcharge

Cai Shui [2005] No. 72

May 25, 2005

The financial departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly under
the Central Government, and cities specifically designated in the state plan, the Financial Supervision Commissioners’ Offices of
the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically
designated in the state plan:

Upon deliberation, we hereby notify as follows the issue concerning the measures for collection before return, collection before refund
and collection upon refund for the value-added tax, business tax and consumption tax (hereinafter referred to as the “three taxes”)
in relation to the policy on the city maintenance and construction tax and the educational surcharge :

Where the measures of collection before return, collection before refund and collection upon refund are taken for the ” three taxes”,
the city maintenance and construction tax and educational surcharge as levied along with the ” three taxes” may not be refunded (returned)
unless it is provided otherwise,.