1. Institutions and individuals (including foreign-invested enterprises, research and development centers with foreign investments, foreign enterprises, and foreign individuals) shall be exempt from the business tax on the incomes gained from technological transfer, technological development business, relevant technological consultation, and technological services.

2. According to GSBF (2004) Doc. No.80, the approval for business tax exemption on the income gained from technical transfer by foreign enterprises and foreign individuals in Chinese territory is cancelled. Upon cancellation, foreign enterprises and foreign individuals applying for business tax exemption shall submit the following documents to the taxation authorities:

(1) The Chinese version of thecontract for technical transfer or technical development;

(2) The certificate of examination opinions, provided by the provincial sci-tech department in charge at the location of the technology transferee;

(3) The technology transfer permit issued by state department in charge;

(4) Foreign enterprises and foreign individuals, who entrust a Chinese technology transferee to handle the procedures for business tax exemption, shall provide a Power of Attorney document, signed by the legal representative of the applicant.

3. Foreign enterprises which merely sold software to enterprises in Chinese territory, or transfered related software with posts and communication equipment and computers, no matter whether the domestic accepters have paid the customs duty and value-added tax in the import link for the above-mentioned software or not, will not be charged business tax for the software use fee.

4. Ordinary life insurance and pension insurance within less than one year (including one year) which return both the principal and interest, as well as health insurance above one year (including one year) launched by the insurance companies, can be exempt from business tax, if examined, and listed by the Ministry of Finance and State General Administration of Taxation as tax-free.

5. Insurance income, from individual investment bonuses launched by the insurance companies, may be exempt from the business tax.

6. The grain logistic project which has been loaned by the World Bank may be exempt from construction and installation business tax, and from project service income tax.

7. Tax deductions for foreign-funded financing business; In case foreign financial institutions engaged in financing business, the interest payment for an overseas foreign exchange loan shall be deducted from the payable business tax, but the domestic foreign exchange (or RMB) loan interest shall not be deducted from the payable business tax.

8. RMB transactions between foreign financial institutions shall not be levied with business tax, temporarily.

9. In case foreign companies transfer the stock rights of an enterprises owned in Chinese territory, the business tax may be exempted if the stock right is not involved with the transfer of intangible assets or real estate.

10. Foreign funded enterprises engaged in financing lease business, with the approval of the Ministry of Commerce, shall enjoy equal treatment, in terms of business tax collection, as do domestic enterprises in the financing lease business, with the approval of the People's Bank of China, based on relevant regulations for financing lease.

11. Any foreign enterprise identified with countries that signed the Protocol and Agreement with China, meeting the terms of Protocol of Double Tax Levying Avoidance, signed between China and other countries, the terms of the Protocol of Mutual Exemption for International Transport Income of Shipping Companies, the Ocean Shipping Agreement, as well as other agreements or Exchange of Notes, (hereinafter called Protocol or Agreement), may be exempt from the enterprise annual income tax and business tax, if they get freight income from international transports, by operating shipping based on the terms defined in The Notice of Interpreting Chinese Transport Issues in the Tax Levying Regulations, promulgated by State General Administration of Taxation(GSH[1998]No.241, except for the agent income of various shipping agents.

12. Foreign-funded enterprises engaged in the treatment of financial assets in China are exempt from the business tax, if they handle retreatment of creditor's right and equity capital (including transfer from the creditor's right to the equity capital).

13. China Mobile Group Corp., and its mainland subsidiaries under China Mobile (Hong Kong) Ltd., are exempt from the business tax for various forms of communications and relevant services they provided in the process of sponsoring the Organizing Committee of Beijing 2008 Olympic Games.