According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Issues Related to Value-added Tax on Asset Management Products (Caishui [2017] No.56), the taxable behavior of value-added tax (hereinafter referred to as asset management product business) occurred by the asset management product manager (hereinafter referred to as the manager) in the process of operating asset management products is temporarily subject to the simple taxation method, and the VAT rate is 3%.

Asset management product managers include banks, trust companies, Public Offering of Fund management companies and their subsidiaries, securities companies and their subsidiaries, futures companies and their subsidiaries, private fund managers, insurance asset management companies, professional insurance asset management institutions and endowment insurance companies.