Value-added tax is an extra-price tax. Value-added tax should be paid for buying and selling, and value-added tax should not be paid for selling at a loss. The "saved" value-added tax has nothing to do with the profit and loss of entrepreneurship and is not reflected in the financial statements.

However, profits or losses shall be included in the taxable income tax to calculate and pay enterprise income tax.

The relevant policy documents for providing futures business are as follows:

Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing Provisions on Some Specific Issues of Value-added Tax Guo Shui Fa [1993] 154

Notice of State Taxation Administration of The People's Republic of China on Issuing Specific Measures for the Collection of Value-added Tax on Commodity Futures [1994] No.244.

Reply of State Taxation Administration of The People's Republic of China on Issuing Tax Payment Certificate for Export Goods Sold on Zhengzhou Commodity Exchange in China [1999] 20 1

Notice of State Taxation Administration of The People's Republic of China on Strengthening the Administration of Enterprise Income Tax Collection in Stock Exchanges [1995] No.078.

Notice of State Taxation Administration of The People's Republic of China on Input Tax Deduction of General VAT Taxpayers' Futures Trading, Guo Shui Fa [2002] No.45.

Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Business Tax Policy in Capital Market (Caishui [2004] No.203) (transition)

Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Payment of Enterprise Income Tax by Futures Brokerage Companies [2005] 104.