· Area of Law： Securities Taxation

· Level of Authority： Industry Regulations

· Date issued：04-25-2016

· Effective Date：04-25-2016

· Status： Effective

· Issuing Authority： China Securities Depository & Clearing Corporation Limited

Announcement of the China Securities Depository and Clearing Corporation Limited on Tax-Related Matters for Clients of the China Securities Depository and Clearing Corporation Limited under the Pilot Program of Replacing Business Tax with Value-Added Tax
All market participants:
In accordance with the Notice on Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an All-Round Manner issued by the Ministry of Finance and the State Administration of Taxation (No. 36 [2016], Ministry of Finance), the pilot program of replacing business tax with value-added tax ("VAT") will be implemented in an all-round manner from May 1, 2016, and all taxpayers of business tax, including the financial industry, are included in the pilot program. In the event that your entity is a general VAT taxpayer and is required to obtain special VAT invoices from the China Securities Depository and Clearing Corporation Limited ("CSDC") in accordance with relevant VAT policies, you shall apply to CSDC for the registration of VAT-related information. Entities and individuals that are not general VAT taxpayers are not required to apply for the registration of tax-related information. Relevant tax-related matters under the pilot program of replacing business tax with VAT are hereby announced as follows:
I. Registration of VAT-related information
(a) To apply for the registration of tax-related information, an applicant shall submit the following materials:
1. The completed Registration Form for Information of Clients Who Are General VAT Taxpayers which shall be affixed with official seal (the hardcopy thereof is not required if application is submitted through the system).
2. A photocopy of the duplicate of the applicant's Business License which shall be affixed with official seal.
3. A photocopy of the duplicate of the applicant's Tax Registration Certificate which shall be affixed with official seal (not required if the applicant has implemented the “three-in-one certificate” registration system).
4. A photocopy of the applicant's Basic Deposit Account Opening Permit which shall be affixed with official seal.
5. A photocopy of the proof of the applicant's eligibility as a general VAT taxpayer which shall be affixed with official seal (one copy of any of the following proofs): the Registration Form for the Qualifications of General VAT Taxpayers affixed with the seal of the competent tax authority; or, the tax registration certificate, the certificate of the qualifications of general VAT taxpayers, and the notice of taxation matters (the notice of matters for recognition of general VAT taxpayers), among others, that have been stamped with the words "general VAT taxpayers."
6. A photocopy of the identity certificate of the applicant's handling person for the registration of VAT-related information (i.e. the contact person for, or the collector of, special VAT invoices) which shall be affixed with official seal.
(b) CSDC shall notify issuers and settlement participating institutions to apply for the registration of tax-related information via PROP, D-COM, CCNET and other channels. The relevant parties shall pay timely attention to relevant notices and submit the aforesaid materials for registration of tax-related information through the business channels specified in relevant notices to apply for the registration of tax-related information.
(c) Investors are not required to register tax-related information for a special purpose. Instead, investors shall go through such registration by submitting the aforesaid materials for registration of tax-related information while handling counter transactions with CSDC.
(d) After first-time registration of VAT-related information, if the VAT-related information of your entity remains unchanged, you are not required to provide the aforesaid materials when handling relevant business subsequently; and, if your entity undergoes any change in VAT-related information, you are required to complete and submit the Registration Form for Information of Clients Who Are General VAT Taxpayers and relevant materials again to go through the formalities for change of information.
II. Procedures for collecting special invoices
(a) Provided that your entity has completed the registration of VAT-related information with CSDC, CSDC shall, in accordance with relevant VAT policies, issue appropriate special VAT invoices for the business expenses incurred by you that meet relevant requirements and provisions.
(b) Where your entity chooses to collect special VAT invoices on site, collection shall be processed at the counters of CSDC upon the strength of the original of the identity card of your contact person for, or collector of, special VAT invoices as indicated under the registration of your tax-related information. Where your entity chooses to receive special VAT invoices by post, CSDC shall send such invoices to the invoice delivery address and the contact person for, or collector of, special VAT invoices as indicated under the registration of your tax-related information.
III. Relevant matters
(a) Your entity shall go through the registration and change of VAT-related information in a timely manner. In the event that the subsequent deduction of special VAT invoices by your entity is affected due to delay in the issuance of special VAT invoices, wrong information, or mailing loss, among others, as a result of your failure to go through the required procedures in a timely manner, failure to submit materials in a truthful, accurate and complete manner under the aforesaid requirements, etc., you shall bear relevant legal liabilities and economic losses on your own, and CSDC shall assume no responsibility.
(b) In the event of changes in state taxation policies, CSDC shall promptly adjust business procedures and relevant requirements in light of the actual circumstances.
(c) The Registration Form for Information of Clients Who Are General VAT Taxpayers may be downloaded from CSDC's website (www.chinaclear.cn) or be collected at CSDC's counters.
(d) Please contact relevant business contact persons of CSDC or call CSDC's service hotline (4008-058-058) if you have any question.
Annex: Registration Form for Information of Clients Who Are General VAT Taxpayers
China Securities Depository and Clearing Corporation Limited
April 25, 2016