Subject to “Supplementary Circular on Several Tax Policies on the Taxable Scope for the Pilot Collection of Value Added Tax in Lieu of Business Tax in the Transportation Industry and Some Modern Service Industries” (Cai Shui [2012] No. 86), the major taxation policies are hereby notified as follows:

1. For services in the fields of construction drawing verification, environmental evaluation and medical assessment of accidents value added tax (VAT) will be levied for “authentication services”. For bookkeeping services VAT will be levied for “consultation service”. For printing and mapping services, VAT will be levied for "design service". For meeting or exhibition organization services VAT will be levied for "meeting and exhibition service". For port facility security fees collected by the port facility operator VAT will be levied for "port and wharf service".
   
   
2. For domestic cargo transportation, storage and loading, unloading and handling services provided by pilot tax payers registered at the bonded port of Tianjin Dongjiang, the policy of refund upon collection of VAT will be applied.
   
   
3. As of November 1, 2012, taxable services provided by pilot tax payers registered in Pingtan and engaging in offshore outsourcing services are exempt from VAT.
   
   
4. For transportation services between the Mainland and the territories of Taiwan, Hong Kong and Macao provided by pilot tax payers in the pilot collection area and for transportation services provided in Taiwan, Hong Kong and Macao, a zero-rate VAT will be applied.
   
   
5. Shipping agency services belong to "cargo transportation agency services" and international shipping agency services belong to “international cargo transportation agency services”.
   
   
6. The actual taxation burden for value added tax under Article 2 (3), and (4) of the Transitional Policies for the Pilot Collection of Value Added Tax in Lieu of Business Tax in the Transportation Industry and Some Modern Service Industries (Cai Shui [2011] No. 111) refers to the proportion of the amount of value added tax actually paid by the tax payer in the current period in comparison to the total price and other fees obtained by the tax payer for providing the taxable service. 

This Circular will take effect as of December 1, 2012 unless otherwise stipulated in Article 3 hereof.