[Tariffs Changes ] Value Added Tax Policies of "Collection First, Drawback Seco

Value added tax policies of "collection first, drawback second" will carry out by the end of 2010 on sales of renewable resources by general taxpayers in the following conditions.

First, Applicable scope of taxpayers for tax rebate policy
The VAT taxpayers of tax rebates shall meet the following conditions

No.1 Taxpayers who should offer archival filing have already made a registration according to the regulation in article 7 and article 8 in Measure on Management of Recycling Renewable Resource (Decree No.8,207 by Minitry of Commerce)

No.2 Fixed field for the storage, arrangement and processing of renewable resource

No.3. The sales of renewable resources settled by financial institutions takes a proporation of more than 80% in the total sales of renewable resource.

No.4 Never get criminal punishment for violating Anti-money Laundering Law of the PRC, Environmental Protection Law of the PRC, Law of the People's Republic of China on the Administration of Tax Collection, Measures of the People's Republic of China on the Administration of Invoice and Measures of the People's Republic of China on the management of Recycling Renewable Resources or administrative penalty (exception of warning and fine) from Administration of Industry and Commerce, Ministry of Commerce, Environmental Protection Bureau, Tax Bureau and Public Security Bureau above the county level.
Second、Proporation of tax rebate

Tax payers who match the conditions of tax rebate will get 70% drawback of the VAT on sales of renewable resources in 2009. besides, 50% tax rebate will returned to the tax payers on sales of renewable resources in 2010.