V. The State Administration of Taxation Issued Measures for Administration of Enterprises Income Tax on Incomes from Policy-based Relocation.

Recently, the State Administration of Taxation issued the Measures for Administration of Enterprises Income Tax on Incomes from Policy-based Relocation (hereinafter referred to as the “Measures”), which take into effect on 1^st of October, 2012, meanwhile, the Notice of the State Administration of Taxation on Relevant Issues Concerning the Enterprise Income Tax on Incomes from Policy-based Relocation or Disposal of Assets (Guo Shui [2009]118) was abolished. The Measures define the income, expenses, taxation treatment of asset and others concerning relocation. The policy-based relocation of an enterprise refers to an enterprise wholly or partly relocates according to the lead of the government in consideration of the requirements of social public interests, such as diplomacy, the implementation of energy, water conservation, transportation and other public utilities and affordable housing project and so on.