Beijing Exchange’s tax policy In order to ensure the smooth operation of the market, the Ministry of Finance and the State Administration of Taxation have clarified the applicable tax policies of the North Exchange.

In order to support the further deepening of the reform of the National Equities Exchange and Quotations (hereinafter referred to as the New Third Board), the selected tier will be changed to the Beijing Stock Exchange (hereinafter referred to as the Beijing Stock Exchange). The Ministry of Finance and the State Administration of Taxation issued a notice on the Beijing Stock Exchange. Announcement on the application of tax policies of the Exchange.

The announcement pointed out that after the selected companies on the New OTC Market are converted into listed companies on the North Exchange, and the companies listed on the innovation level are listed on the North Exchange through public issuance of stocks, the personal income tax involved in investing in companies listed on the North Exchange , Stamp tax related policies are temporarily implemented in accordance with the current tax regulations applicable to the New Third Board. Policies related to corporate income tax and value-added tax shall be implemented in accordance with the Corporate Income Tax Law and its implementation regulations, the Notice of the Ministry of Finance and the State Administration of Taxation on comprehensively launching the pilot program of replacing business tax with value-added tax and relevant regulations.

Legal Basis

"Tax Collection and Management Law of the People's Republic of China"

Article 5 The taxation department of the State Council is responsible for the national tax collection and management work. The state taxation bureaus and local taxation bureaus of various regions shall conduct tax collection and management respectively in accordance with the tax collection and management scope stipulated by the State Council. Local people's governments at all levels shall strengthen leadership or coordination of tax collection and management within their respective administrative regions in accordance with the law, support tax authorities in performing their duties in accordance with the law, calculate tax amounts in accordance with statutory tax rates, and collect taxes in accordance with the law. All relevant departments and units shall support and assist tax authorities in performing their duties in accordance with the law. Tax authorities perform their duties in accordance with the law, and no unit or individual may obstruct it. Article 6 The state shall use modern information technology to equip tax authorities at all levels in a planned manner, strengthen the modernization of tax collection and management information systems, and establish and improve an information sharing system between tax authorities and other government management agencies. Taxpayers, withholding agents and other relevant entities shall truthfully provide tax authorities with information related to tax payment, withholding and remittance, and collection and remittance of taxes in accordance with relevant national regulations. Article 8 Taxpayers and withholding agents have the right to learn from tax authorities about the provisions of national tax laws and administrative regulations as well as information related to tax payment procedures. Taxpayers and withholding agents have the right to require the tax authorities to keep the information of taxpayers and withholding agents confidential. The tax authorities shall keep the information of taxpayers and withholding agents confidential in accordance with the law. Taxpayers have the right to apply for tax reductions, exemptions, and tax refunds in accordance with the law. Taxpayers and withholding agents have the right to state and defend decisions made by tax authorities; they also have the right to apply for administrative reconsideration, initiate administrative litigation, and request state compensation in accordance with the law. Taxpayers and withholding agents have the right to accuse and report illegal and disciplinary behaviors of tax authorities and tax personnel.