("CIRCULAR") (关于暂免征收部分小微企业增值税和营业税的通知), ISSUED BY THE STATE ADMINISTRATION OF TAXATION ("SAT") AND THE MINISTRY OF FINANCE ("MOF")

On July 29, MOF and SAT issued a notice on temporarily exempting some small and micro enterprises from VAT and business tax. The Circular states that, on the State Council’s approval, effective August 1, 2013, small-scale VAT taxpayers with monthly sales volumes of up to RMB 20,000 will be temporarily exempt from paying VAT, and BT taxpayers with monthly turnovers of up to RMB 20,000 will be temporarily exempt from paying BT.

Date of issue: July 29, 2013. Effective date: August 1, 2013.