The new Detailed Rules of the Provisional Regulations on Value-added Tax of the People’s Republic of China (the “VAT Rules”) and the new Detailed Rules of the Provisional Regulations on Business Tax of the People’s Republic of China (the “Business Tax Rules”) were issued by the Ministry of Finance and the State Administration of Taxation on October 28, 2011 and will become effective as of November 1, 2011.

According to the VAT Rules and the Business Tax Rules, the minimum thresholds of the Valued-added Tax (the “VAT”) and the business tax are increased. The specific rules are as follows: