Tax Policy - The announcement from the Ministry of Finance and the State Administration of Taxation states that transactions of standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from value-added tax (VAT) for sellers if there is no physical delivery [7][8] - For members purchasing standard gold for investment purposes, VAT will be refunded immediately, and they will also be exempt from urban maintenance and construction tax and education fees [7] - The policy will be effective from November 1, 2025, until December 31, 2027, with applicability based on the timing of physical delivery [8] Employment Tax Deductions - Companies hiring disabled employees can enjoy a 100% wage deduction for tax purposes, provided they meet specific conditions, including signing a labor contract of at least one year and ensuring the employees are actually working [9][13] - Companies must also pay the minimum wage as approved by the provincial government and ensure that social insurance contributions are made for the disabled employees [18][22] - Wage deductions can only be claimed during the annual tax return process, not during the prepayment of corporate income tax [18][21]

Core Viewpoint - The recent announcement by the Ministry of Finance and the State Taxation Administration regarding gold tax policies aims to clarify and standardize the taxation process for gold transactions, impacting the market structure and regulatory environment for gold trading [2][3][38]. Summary by Sections Announcement Details - The policy document titled "Announcement on Tax Policies Related to Gold" was jointly released on October 29 and will be effective from November 1, 2023, until December 31, 2027 [3]. - The document addresses taxation for transactions conducted through the Shanghai Gold Exchange and the Shanghai Futures Exchange [4]. Purpose of the Document - The document aims to resolve ambiguities in tax regulations that have existed since previous policies in 2002 and 2008, which led to inconsistencies and gray areas in the market [6][7]. - It seeks to establish a unified and verifiable system for taxation based on the type of gold transaction and its intended use [5][8]. Taxation Logic - The document outlines three key questions to determine tax obligations: whether the gold was purchased on an exchange, whether it was withdrawn, and its intended use (investment or processing) [9]. - Transactions on the exchanges are exempt from value-added tax (VAT) for sellers, while retail gold and jewelry are not covered by this exemption [10]. Definitions and Tax Implications - "Standard gold" is defined in the document, including specific purity levels and weights [11]. - If gold is not physically withdrawn from the exchange, it is not subject to VAT [12]. - Upon withdrawal, if the gold is for investment, a mechanism of "immediate collection and refund" applies, allowing for VAT refunds and exemptions from certain local taxes [13]. - For non-investment purposes, VAT is not applied at the exchange level, but a regular invoice is issued [15]. Compliance and Enforcement - The document introduces a mechanism for changing the declared use of gold within a six-month window, but only once [25][28]. - The invoice serves as an identifier for the type of transaction, linking tax obligations to the declared use of the gold [29]. - Non-compliance can lead to penalties, including suspension of tax benefits and potential disqualification from future tax exemptions [32][33]. Regulatory Framework - The execution of the policy is primarily managed by the exchanges, which will handle tax collection and invoicing, while the tax authority will oversee compliance [34]. - The policy aims to create a traceable system for gold transactions, enhancing regulatory oversight and reducing opportunities for tax evasion [36]. Broader Implications - The document signifies a shift towards a more regulated gold market, potentially impacting market dynamics and investor behavior [40][42]. - It reflects a broader trend in digital regulatory frameworks for commodities, indicating a move towards enhanced transparency and accountability in financial markets [42].

Core Viewpoint - The announcement by the Ministry of Finance and the State Taxation Administration outlines new tax policies regarding gold transactions, effective from November 1, 2025, to December 31, 2027, which include exemptions and specific tax treatments for different types of gold purchases and sales [11]. Tax Policies for Gold Transactions - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from value-added tax (VAT) when selling standard gold [1]. - For members purchasing standard gold for investment purposes, VAT will be refunded immediately, and they will also be exempt from urban maintenance and construction tax and educational fees [1]. - If standard gold is purchased for non-investment purposes, VAT will also be exempt, and a regular invoice will be issued [2]. Definitions and Conditions - Standard gold is defined as gold that meets specific purity and weight standards, including AU99.99, AU99.95, AU99.9, AU99.5, and weights of 50 grams, 100 grams, 1 kilogram, 3 kilograms, and 12.5 kilograms [5]. - Investment purposes include direct sales and the processing of gold into products with a purity of 99.5% or higher [5]. Tax Calculation and Reporting - The calculation of VAT for members purchasing standard gold for investment purposes involves specific formulas for determining unit price, amount, and tax based on actual transaction prices [7][6]. - Members must report any changes in the use of standard gold before the change occurs, and they can only apply for a change in use once within six months of the original purchase [8][10]. Compliance and Penalties - Failure to report changes in use or to issue the correct invoices may result in penalties, including the suspension of VAT refund privileges [10]. - Serious violations, such as fraudulent tax claims, will lead to stricter penalties, including the inability to issue VAT invoices [10]. Implementation Timeline - The new tax policies will be effective from November 1, 2025, and will replace previous regulations from 2002 and 2008 [11].

Core Viewpoint - The announcement from the Ministry of Finance and the State Taxation Administration introduces a new tax policy for gold transactions, effective from November 1, 2025, which exempts value-added tax (VAT) for certain transactions involving standard gold through designated exchanges [1][4]. Summary by Sections Tax Exemption for Standard Gold Transactions - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from VAT when selling standard gold [4][5]. - If there is no physical delivery, the exchanges will also exempt VAT [1][4]. Tax Policies for Different Uses of Gold - For investment purposes, members purchasing standard gold will benefit from immediate VAT refund and exemption from urban maintenance and education fees [4][5]. - Non-investment purchases will also be exempt from VAT, with regular invoices issued [5][6]. Definition of Standard Gold - Standard gold is defined by specific purity and weight standards, including AU99.99, AU99.95, AU99.9, and AU99.5, with weights of 50g, 100g, 1kg, 3kg, and 12.5kg [4][6]. Reporting and Invoice Requirements - Members must report any change in the use of standard gold before the change occurs, with specific procedures for changing from investment to non-investment use and vice versa [8][9]. - Invoices must be issued according to the type of transaction and use, with specific rules for VAT deductions [9][10]. Implementation Timeline - The new tax policy will be in effect from November 1, 2025, until December 31, 2027, with previous regulations being repealed [11].

Core Points - The Ministry of Finance and the State Taxation Administration announced new tax policies regarding gold transactions, effective from November 1, 2025, to December 31, 2027 [9] Tax Policy for Gold Transactions - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from value-added tax (VAT) when selling standard gold [1] - For physical delivery of gold, VAT policies will apply based on the nature of the transaction, with specific provisions for investment and non-investment purposes [2][3] Definitions and Standards - Standard gold is defined by specific purity levels (AU99.99, AU99.95, AU99.9, AU99.5) and weights (50g, 100g, 1kg, 3kg, 12.5kg) [4] - Investment purposes include direct sales and production of gold products with a purity of 99.5% or higher, while non-investment purposes refer to all other uses [4] VAT Calculation and Invoicing - For investment purposes, VAT will be collected and refunded immediately, while for non-investment purposes, VAT will be exempt [5][6] - The calculation of VAT for transactions involves specific formulas based on actual transaction prices and quantities [5] Reporting and Compliance - Members must report any changes in the use of gold before the change occurs, with a six-month window to apply for changes [6][8] - Failure to report changes or comply with invoicing regulations may result in penalties, including the suspension of VAT invoicing privileges [8] Implementation and Transition - The new policies will replace previous regulations from 2002 and 2008, streamlining the tax framework for gold transactions [9]

Core Points - The announcement from the Ministry of Finance and the State Taxation Administration outlines new tax policies regarding gold transactions, effective from November 1, 2025, to December 31, 2027 [10] Tax Policy for Gold Transactions - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from value-added tax (VAT) when selling standard gold [1] - For physical delivery of gold, VAT policies will apply as follows: - If members purchase standard gold for investment purposes, VAT will be levied and refunded immediately, and they will be exempt from urban maintenance and construction tax and education fees [1] - If members purchase standard gold for non-investment purposes, VAT will be exempt, and they will issue ordinary invoices [2] - Clients purchasing standard gold will also be exempt from VAT and will receive ordinary invoices [2] Definitions and Conditions - The term "standard gold" refers to gold that meets specific purity and weight standards, including AU99.99, AU99.95, AU99.9, AU99.5, and weights of 50 grams, 100 grams, 1 kilogram, 3 kilograms, and 12.5 kilograms [4] - Investment purposes include direct sales and processing into gold products with a purity of 99.5% or higher [4] Invoice and Tax Calculation - The calculation of VAT for members purchasing standard gold for investment purposes involves specific formulas for determining unit price, amount, and tax amount based on actual transaction prices [5] - If the purpose of the gold changes after physical delivery, members must report this change to the exchange within six months [6] Compliance and Penalties - Members failing to report changes in gold usage or not issuing invoices as required may face penalties, including a shift from immediate VAT refund to VAT exemption [8][9] - Serious tax violations related to gold transactions may result in the inability to issue VAT invoices [9] Implementation Timeline - The new tax policies will be effective from November 1, 2025, and will replace previous regulations from 2002 and 2008 [10]

Core Viewpoint - The announcement outlines new tax policies regarding the trading of standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange, including exemptions and specific tax treatments for different types of transactions and purposes [2][8]. Tax Exemption for Standard Gold Transactions - Members or clients trading standard gold through the exchanges are exempt from value-added tax (VAT) when selling standard gold, with specific conditions for physical delivery and investment purposes [2][3]. - For investment purposes, VAT is collected and refunded immediately, while city maintenance and education fees are also exempted [2][3]. Tax Treatment for Non-Investment Purposes - When standard gold is purchased for non-investment purposes, VAT is exempted, and a regular invoice is issued [3]. - Clients purchasing standard gold are also exempt from VAT, with specific invoicing requirements based on their VAT status [3]. Definition of Standard Gold - Standard gold is defined by specific purity levels (AU99.99, AU99.95, AU99.9, AU99.5) and weights (50g, 100g, 1kg, 3kg, 12.5kg) [4]. Reporting and Changing Use of Gold - Members must report any change in the use of standard gold before the change occurs, with specific procedures for changing from investment to non-investment purposes and vice versa [5][6]. - The announcement specifies the process for issuing invoices and handling VAT adjustments based on the change in use [5][6]. Implementation Timeline - The new tax policies will take effect from November 1, 2025, and will remain in force until December 31, 2027, with previous regulations being repealed [8].

Core Points - The Ministry of Finance and the State Taxation Administration announced new tax policies regarding gold transactions, effective from November 1, 2025, to December 31, 2027 [13] - The announcement includes exemptions from value-added tax (VAT) for transactions involving standard gold through designated exchanges [1][2] Tax Policy Summary - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from VAT when selling standard gold [1] - For investment purposes, members purchasing standard gold will benefit from immediate VAT refunds and exemptions from urban maintenance and education fees [1] - Non-investment purchases of standard gold will also be exempt from VAT, with ordinary invoices issued to buyers [2] - Tax obligations apply if standard gold is sold outside the exchanges [3] Definitions and Conditions - "Members" refers to entities registered with the Shanghai Gold Exchange, while "clients" are those registered with the exchange for trading [4][5] - "Standard gold" is defined by specific purity and weight standards, including AU99.99, AU99.95, AU99.9, AU99.5, and weights ranging from 50 grams to 12.5 kilograms [6] - "Investment purposes" include direct sales and production of gold products with a purity of 99.5% or higher [6] Invoice and Tax Calculation - For transactions involving physical delivery of standard gold, specific calculations for VAT invoices are outlined, including methods for determining unit price, amount, and tax [8] - Changes in the use of standard gold after physical delivery must be reported to the exchange within six months [9][10] Compliance and Penalties - Failure to report changes in the use of standard gold may result in penalties, including the suspension of VAT invoice issuance [12] - The announcement also addresses potential tax fraud related to gold transactions [12] Implementation Timeline - The new tax policies will be in effect from November 1, 2025, and will replace previous regulations [13]

Core Viewpoint - The announcement from the Ministry of Finance and the State Taxation Administration outlines new tax policies regarding gold transactions, particularly focusing on the exemption of value-added tax (VAT) for certain transactions involving standard gold [1][2]. Tax Policies Summary - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from VAT when selling standard gold. If physical delivery occurs, VAT policies will apply as follows: - For investment purposes, VAT will be levied and refunded immediately, along with exemptions from urban maintenance and construction tax and education fees. Invoices will be issued based on the actual transaction price [3]. - For non-investment purposes, VAT will also be exempt, and invoices will be issued accordingly [4]. - Clients purchasing standard gold will also benefit from VAT exemptions, with specific invoicing requirements based on their VAT status [4]. Definitions and Conditions - The term "member unit" refers to entities registered with the Shanghai Gold Exchange, while "clients" are those registered with the exchange. The definition of "standard gold" includes specific purity and weight criteria [6][7]. - Investment purposes include direct sales and the production of gold products with a purity of 99.5% or higher, while non-investment purposes refer to all other uses [7]. Tax Calculation and Reporting - The announcement details the calculation methods for VAT based on actual transaction prices and the handling of invoices for changes in the use of standard gold [8][9]. - Members must report any changes in the use of standard gold to the exchange within six months of physical delivery [10]. Implementation Timeline - The new tax policies will take effect from November 1, 2025, and will remain in force until December 31, 2027. Previous tax notifications will be repealed as of the implementation date [12].