Ⅴ Taxation Ⅵ Contingencies and Major Off-balance Sheet Items.pdf

110 ANNUAL REPORT 2009 财务报表附注 Notes to Financial Statements (2) According to the income tax levied in the year 2008, net profit of the year 2008 reduces 183,847,012.42 yuan, undistributed profit at the beginning of 2009 reduces 183,847,012.42 yuan. Ⅴ Taxation The principal taxes and tax rates to which the Bank is subject to are listed below: Tax/fee Tax/fee basis Tax/fee rate Business tax Taxable financial operations income 5% City Construction tax Business tax 7% Education surcharges Business tax 3% Income taxes Taxable income 25% According to the regulation of Guoshuifa [2008] 28 circular and Guoshuihan [2004] 996 circular, income tax of the Bank is turned in on an aggregated basis by the headquarter at the end of a period, and business tax is turned in separately by the headquarter and branches. Yinding Holdings Ltd, a subsidiary of the Bank located in Hong Kong calculates and turns in its taxes in accordance to local taxation regulations. Ⅵ Contingencies and Major Off-balance Sheet Items 1. Legal proceedings Up until Dec. 31, 2009, there are no legal proceedings with