Laws of the People's Republic of China

Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Related Tax Policies on the Service Sponsorship of the 29th Olympic Games by Atos Origin (Beijing) Company and Omega (Switzerland) Company

Cai Shui [2007] No. 38

The public finance departments (bureaus), state taxation bureaus and local taxation bureaus of each province, autonomous region, municipality directly under the Central Government and city specifically designated in the state plan,

For the purpose of ensuring the success of the 29th Olympic Games held in China, upon study, the related tax matters on the service sponsorship to the 29th Olympic Games in the forms of cash and goods, etc. by Atos Origin (Beijing) Company and Omega (Switzerland) Company are hereby clarified as follows:

1.

As regards the 82,510,000 USD of expenses for Atos Origin (Beijing) Company to provide the service sponsorship to the Beijing Organizing Committee in accordance with the sponsorship agreement, when calculating the taxable enterprise incomes, the actual amount occurred in the current year shall be totally deducted according to Item 4 of Article 2 of the Notice of the Ministry of Finance, the State Administration of Taxation and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai Shui [2003] No. 10).

2.

As regards the 53,110,000 USD of expenses for Omega (Switzerland) Company to provide the service sponsorship to the BOCOG in accordance with the sponsorship agreement, where no permanent institution has been set up within the territory of China in accordance with the Agreement between the Government of the People's Republic of China and the Swiss Federal Council on Avoiding Double Taxation on Incomes and Properties, the matter of pre-tax deduction is not involved; where a permanent institution has been established within the territory of China, in accordance with Item 4 of Article 2 of the Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai Shui [2003] No. 10), when calculating the taxable enterprise incomes, the actual amount occurred in the current year shall be totally deducted. Where the enterprise income tax is levied by way of verifying profits, the expenses for such service sponsorship may be deducted directly from the income amount, on basis of which, the taxes to be levied are verified.

3.

As regards the sponsorship services gratuitously provided to the BOCOG by Atos Origin (Beijing) Company or Omega (Switzerland) Companyin accordance with the sponsorship agreement, no business tax may be levied.

4.

Except for the service sponsorship, in case Atos Origin (Beijing) Company or Omega (Switzerland) Company collects other service incomes from the BOCOG, related taxes shall be paid in accordance with the tax law or the treaty of China.

The Ministry of Finance

The State Administration of Taxation

March 29, 2007