On June 20, 2016, in Warsaw, the Chinese and Polish governments signed an Agreement for the Reciprocal Exemption of International Air Transportation Services from Value Added Tax (“VAT”) or Any Tax of a Similar Nature (the “Agreement”).

Under the Agreement, which entered into force on July 1, 2016, as stated in Announcement [2016] No. 49, international air transportation services provided by an airline established in one state will be exempt from VAT in the other state.