I. About Business Tax

● The funds raised by issuing funds do not belong to the scope of business tax, and no business tax is levied.

● Fund managers use funds to buy and sell stocks and bonds, and will be temporarily exempted from business tax before the end of 2003.

● Financial institutions (including banks and non-bank financial institutions) levy business tax on the difference income from fund share subscription and redemption; Business tax is not levied on the difference income from the purchase and redemption of fund shares by individuals and non-financial institutions.

Second, on the issue of income tax.

● Before the end of 2003, enterprise income tax will be temporarily exempted for the difference income of fund managers who use funds to buy and sell stocks and bonds.

● Personal income tax will not be levied on the difference income obtained by individual investors from purchasing and redeeming fund shares until the personal income tax on the difference income from buying and selling stocks is resumed; The difference income obtained from the purchase and redemption of fund shares by enterprise investors shall be incorporated into the taxable income of enterprises, and enterprise income tax shall be levied.

● When listed companies, bond issuing enterprises and banks pay the above income to the Fund for dividend income of stocks, interest income of bonds and interest income of savings deposits, they shall withhold and pay 20% of personal income tax; Individual income tax and enterprise income tax will not be levied on the income obtained by investors (including individual and institutional investors) from fund distribution.

Third, the issue of stamp duty.

● Fund managers use funds to buy and sell stocks, and stamp duty is levied at the rate of 2‰.

● Stamp duty will not be levied temporarily for investors to purchase and redeem fund shares.

4. Business tax, enterprise income tax and other related taxes shall be levied in accordance with the relevant provisions of the tax law on the income obtained by fund managers, fund custodians and fund consignment agencies from fund management activities.