Financial offices (bureaus) of all provinces, autonomous regions, municipalities, separately listed cities in plan, state tax bureaus, local tax bureau and financial bureau of Xinjiang Production and Construction corps:

For the purpose of coping with highly pathogenic bird flu epidemic, in accordance with spirit of Several Suggestions of General Office of the State Council on Supporting Development of Poultry Industry (No.56, 2005), related matters on tax policies of poultry industry are now announced as follows:

1. As from Nov 1, 2005 to Jun 30, 2006, in case poultry-processing enterprises and enterprises of cold storage that belong to average taxpayer of value-added tax process or sell poultry products, they will enjoy value-added tax rebates as well as exemption of urban maintenance and construction tax and surcharge of education.
2. Enterprises of fowl raising (including raising of fowls for breeding), processing and cold storage involved in fowl raising (including raising of fowls for breeding), processing and cold storage will enjoy exemption of corporate income tax of 2005. Corporate income tax of 2006 is subject to specific conditions.
3. Special subsidies obtained from poultry killings will also be exempted form corporate income tax and individual income tax; net losses because of poultry killings are allowed being listed as expenditure before tax.
4. Reduction of value-added taxes and individual income taxes will be implemented in accordance with the present financial system.
5. Related departments should ensure export rebates of fowl processing products for enterprises.
6. Approved by People’s Government of provinces, autonomous regions and municipalities, related departments may properly reduce and exempt land use tax, real estate tax and vehicle use tax during the first half of 2006 of enterprises or individual business of fowl raising (including raising of fowls for breeding), processing and cold storage under the jurisdiction.

Ministry of Finance
State Administration of Taxation

Dec 7, 2005