(1) According to the Notice on Issues Related to Value-added Tax of Asset Management Products (Caishui [217] No.56), since January 1, 218, the taxable behavior of value-added tax incurred by private equity fund managers in the process of operating private equity funds is temporarily subject to the simple taxation method, and the value-added tax is paid at the rate of 3%.

(ii) according to the notice on comprehensively pushing forward the pilot project of changing business tax to value-added tax (caishui [216] No.36), the income from the transfer of financial commodities obtained by managers of securities investment funds (closed-end securities investment funds and open-end securities investment funds) by using the funds to buy and sell stocks and bonds is exempted from value-added tax.

(3) according to article 2 of the law of the people's Republic of China on securities investment funds (adopted at the fifth session of the 1th the NPC Standing Committee on October 28th, 23 and revised at the 3th session of the 11th the NPC Standing Committee on December 28th, 212), securities investment funds include public securities investment funds and private securities investment funds.