Tax Revenue Announcement

Interpretation and Decision on the Adjustment of National VAT Tax Rate

Distinguished partners:

Hello! According to the requirements of the Notice on Adjustment of VAT Tax Rate issued by the Ministry of Finance and the General Administration of Taxation,

From April 1, 2019, the VAT tax rate of manufacturing industry and other industries has been adjusted from 16% to 13%. Now our company has made the following annotations on "requirements":

The VAT is jiawaishui, relative to the intermediate circulation enterprises, value-added tax is the enterprise instead of national temporary collection amount, will eventually be submitted to the state, so the tax rate adjustment does not reduce the price in the enterprise production cost;

(2) Tax reduction measures only enable all walks of life in the country to enjoy tax reduction policies, not the need to reduce prices, nor is it only for individual enterprises to reduce taxes.

Based on the above, we now make the following decision:

The unit price (including tax) of our products shall be executed at the original price without any adjustment.

Our VAT invoices shall be issued in accordance with the national standards.

I hereby inform you!

If you have any questions, please contact the Marketing Commissioner (0760-22128182) or Regional Manager of Xiangrong Power Sales Department.

Zhongshan Xiangrong Caster Manufacturing Co., Ltd.

March 25, 2019