Notice of the Ministry of Finance and the State Administration of Taxation on Corporate Income Tax Policy Issues Related to Asset Appreciation During the Restructuring and Listing of China Telecom's Industrial Assets

This notice clarifies that the 645 million yuan asset appraisal appreciation arising from China Telecom's industrial asset restructuring and listing shall be directly transferred to capital reserves without being subject to corporate income tax, and allows China Communications Services Corporation to depreciate or amortize the assets based on the appraised value for tax deduction purposes.