1. According to the "Notice of the Ministry of Finance in State Taxation Administration of The People's Republic of China on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to VAT" (Caishui [2016] No.36), Annex I "Implementation Measures of Changing Business Tax to VAT" stipulates: "Article 14 The following situations are regarded as sales services, intangible assets or real estate:

(a) units or individual industrial and commercial households provide services to other units or individuals free of charge, except for public welfare undertakings or for the public.

(2) A unit or individual transfers intangible assets or immovable property to other units or individuals free of charge, unless it is used for public welfare undertakings or for the public.

(3) Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China. "

2. According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Cai Shui [20 16] No.36), "...... the contents specified in the annex of this notice shall be implemented as of May 1 6, unless otherwise specified."