Laws of the People's Republic of China

the State Administration of Taxation

Official Reply of the State Administration of Taxation on the Issue of Tax Exemption of Hong Kong Management Association Guangzhou Representative Office

Guo Shui Han [2005] No. 803

Guangdong Provincial Bureau of State Taxation:

Your Bureau's Request for Instruction concerning the Issue on the Application Filed by Hong Kong Management Association Guangzhou Representative Office for Being Exempted from Enterprise Income Tax (Yue Guo Shui Fa [2005] No. 136) has been received, and an official reply is hereby given as follows:

Hong Kong Management Association Guangzhou Representative Office, established in 1997,mainly engages in the relevant discussions, the design of management training places and the supply of training, and video and audio apparatus. Hong Kong Inland Revenue Department has issued a document to certify that Hong Kong Management Association, the head office, is a non-profit institution. According to the Circular of the State Administration of Taxation concerning Relevant Issues on Strengthening the Tax Collection and Administration of Foreign Enterprises' Permanent Representative Offices (Guo Shui Fa [1996] No. 165), if Hong Kong Management Association Guangzhou Representative Office engages in the business prescribed in Item (2) of Paragraph 2 of Article 1 of Guo Shui Fa [1996] No. 165, it may be exempted from enterprise income tax and business tax.

State Administration of Taxation

August 16, 2005