The Pronouncement of Business Tax Policy for Capital market by
The Ministry of Finance, State Administration of Taxation

The Ministry of Finance, The State Administration of Taxation
Cai Sui [2005] No.203
21 December 2004

Recently, with a view to promote the healthy and steady growth of Capital market and make a further step to the implementation of "the sets of opinions on further promoting the reform, opening-up and stable development of the capital market announced by the State Council", the State Administration of Taxation (SAT) has announced the Business Tax Policy for Capital market which has be taken into effect on 01 January 2005. Details as below:

Deducting the monitoring fees charge by the following authorities from the gross revenue for Business Tax calculation purpose:-
- by the Shanghai and Shenzhen stock exchange for stock trading; and
- by the Shanghai, Shenzhen and Dailian Futures Exchange for the transaction of futures contracts.

Deducting the following fee from the gross revenue for Business Tax calculation purpose.-
1. the monitoring fee for stock trading charged by Stock Exchange
2. the brokerage commission
3. the account opening fee (including A Share and B Share) charged by the China Securities Registration and Clearing Corporation, the account opening fee for special stock transfer, account transfer fee, account clearing fee for B Share and the custodian changing fee.

Allow the Futures brokerage companies to deduct the brokerage commissions from its gross revenue for Business Tax calculation purpose.

財稅[2005]203號
2004年12月21日

近日，國家稅務總局為了促進資本市場的健康穩定發展，同時也是進一步貫徹落實《國務院關於推進資本市場改革開放和穩定發展的若干意見》，發佈了資本市場的有關營業稅政策通知，自2005年1月1日起開始正式實施。通知的具體內容如下：

准許在營業稅計稅營業額中扣除監管費。
1. 允許上海、深圳證券交易所代收的證券交易監管費從其營業稅計稅營業額中扣除。
2. 允許上海、深圳、大連期貨交易所代收的期貨市場監管費從其營業稅計稅營業額中扣除。

准許在營業稅計稅營業額中扣除以下代收費用。
l、為證券交易所代收的證券交易監管費；
2、代理他人買賣證券代收的證券交易所經手費；
3、為中國證券登記結算公司代收的股東帳戶開戶費(包括A股和B股)、特別轉讓股票開戶費、過戶費、B股結算費、轉託管費；

准許期貨經紀公司為期貨交易所代收的手續費從其營業稅計稅營業額中扣除。