Local taxation bureaus and sub-bureaus in each district and county,
　　We now forward to you the Notice of the State Administration of Taxation on Tax Exemption for Dutch Bid Winners (Companies and Individuals) of the Project Receiving Dutch Assistance (G. S. H. [2004] No. 566). Please implement it.


　　May 9, 2005


　　　　　　　　　　　　　　　　　　State Administration of Taxation

　　　　　　　　　　　　　　　　　　　　G. S. H [2004] No. 566

　　Notice of the State Administration of Taxation on Tax Exemption for Dutch Bid Winners (Companies and Individuals) of the Project Receiving Dutch Assistance
　　Beijing Municipal Office, State Administration of Taxation and Beijing Local Taxation Bureau,
　　Recently, we received a letter from the Ministry of Commerce, which said that on Dec. 1, 2003, the Ministry of Commerce, on behalf of the Chinese government, concluded an agreement with Dutch government on “Feasibility Technology Development and Demonstration of the Environmental Infrastructure in China’s Western Small Towns” (hereinafter to be referred to as “the project”). The Dutch government will give China nonreimbursable assistance, aiming to reduce poverty and eliminate environmental pollution by developing economically applicable technology and demonstration of environmental infrastructure in China’s western small towns. The Office of Economically Applicable Technology and Demonstration of Environmental Infrastructure in China’s Western Small Towns under the Ministry of Construction will take charge of this project, and the fund from the Dutch government will also be allocated to this Office. According to the Article 3 (6) in the agreement on this project, the Dutch bid winners of this project (including companies and individuals) will be exempted from the tax for wages, remunerations and earnings. Please verify the above-said matters, and exempt the tax for the Dutch bid winners (including companies and individuals) and issued Tax Payment Receipt and Tax Return Certificate for Tax Exemption according to relevant regulations.

　　May 17, 2004