1. MADE BY: Muhammedov Amonullo

2. The value added tax ("VAT") is imposed on the entity and individual engaged in marketing goods, providing processing, repair or replacements services or importing goods within China. The VAT taxpayer is classified into the general taxpayer and the small-scale taxpayer. As for the general taxpayer, the VAT is imposed on the increment value of its sale (or import) of goods or provision of processing, repair and/or replacements services, the basic tax rate is 17%, the lower tax rate is 13%, and the tax rate for export goods is 0; as for the small-scale taxpayer, a simplified system of computation of tax payable is applied, and the rate is 3%. Generally, the prescribed time limit for paying VAT is 1 month. In addition, based on the amount of VAT payable by the taxpayer, there are other six types of the prescribed time limit for paying VAT, i.e. 1 day, 3 days, 5 days, 10 days, 15 days and 1 quarter, of which the prescribed time limit of 1 quarter only applies to the small-scale taxpayer

3. The consumption tax is imposed on the entity and individual engaged in producing, consigned processing, or importing taxable consumer goods within China. The taxation scope covers 14 tax items such as tobacco, alcoholic drinks and alcohol, cosmetics, jewelry and precious stones. The consumption tax payable is assessed respectively under the rate on value method or the amount on volume method on the basis of the volume of sales or the quantity of sales in respect of the taxable consumer goods, in accordance with the tax items specified by the tax laws. The prescribed time limit for paying consumption tax is the same as that for VAT.

4. he business tax is imposed on the entity and individual engaged in providing taxable services, transferring intangible assets or selling immovable property within China. The taxable services cover 7 tax items, such as transportation industry, building industry, and finance and insurance industry 。 The business tax payable shall be calculated on the basis of the business turnover, amount of transfer or sales volume in respect of the taxable services or taxable activities at the statutory tax rate. The tax rate applicable to entertainment industry is 20%, except that the tax rate applicable to the billiards clubs and bowling halls in such industry is 5%; the tax rate applicable to all the other tax items is 3% or 5%. The prescribed time limit for paying business tax is the same as those for VAT and consumption tax.

5. All enterprises and other income receiving organizations (excluding sole proprietorship enterprises and partnership enterprise) within China shall be the taxpayers of the enterprise income tax. The enterprises are classified into resident enterprises and non-resident enterprises. Resident enterprises shall pay the enterprise income tax for their income sourced within and outside of China.

6. The tax rate is 25%. Enterprise income tax shall be calculated on the basis of a tax year which shall commence on January 1 and end on December 31 of each calendar year

7. tax rate of 7 levels from 3% to 45% is applied to the income from wages and salaries, a progressive tax rate of 5 levels from 5% to 35% is applied to the income from production and business and the income from contracted or leased operation of enterprises or undertakings derived by individual industrial and commercial households (note: which is similarly applied to the investors of sole proprietorship enterprises and partnership enterprises), and a flat tax rate of 20% is applied to all the other types of income. From September 1, 2011, in terms of the income from wages and salaries, the standard monthly deduction for expenses is increased from RMB 2000 to RMB 3500

8. Resource Tax-5% to 10% Urban and Township Land Use Tax- ranging from RMB 0.6 to 30/m2 House Property Tax-tax rate is 12% Tax on the Use of Arable Land-0%, 40%, 50% and 60% Vehicle Purchase Tax-tax rate is 10%

9. The tobacco leaf tax is imposed on an entity that engages in the purchase of tobacco leaves (including aired tobacco leaves and baked tobacco leaves) within China, and shall be calculated on the basis of the sum as generated from tobacco leaf purchases at the tax rate of 20%. The taxpayer shall file the tax returns within 30 days upon the occurrence of the tax payment obligation. The prescribed time limit for paying the tax shall be determined by the competent tax authorities

10. The end