Exemption of Business Tax on
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss whatsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00753)
Impact of the Exemption of Business Tax on Air Traffic Revenue
Generated from International and Regional Routes
Air China Limited (the "Company") learned from the website of the Ministry of Finance that the Notice Concerning Exemption of Business Tax on the Provision of International Transport Services (Cai Shui [2010] No. 8) was jointly issued by the Ministry of Finance and the State Administration of Taxation (the "Notice"). Pursuant to the Notice, it is provided that "since 1 January 2010, entities or individuals within the People's Republic of China providing international transport services shall be exempt from business tax". Currently, the Company has not received any formal notice in this respect. However, by following the underlying principle of the Notice, based on the actual air traffic revenue generated from international and regional routes of the Company for 2009 (net of revenue from fuel surcharge) and a consolidated tax rate of approximately 3.21% (including the business tax, urban maintenance and construction tax and education surcharge), it is estimated that the Company will benefit from a reduction of business tax and additional expenses of approximately RMB549 million for 2009 under such policy.
This announcement is published pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
By order of the Board
Air China Limited
Huang Bin Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 6 May 2010
As at the date of this announcement, the directors of the Company are Mr. Kong Dong, Ms. Wang Yinxiang, Mr. Wang Shixiang, Mr. Cao Jianxiong, Mr. Christopher Dale Pratt, Mr. Chen Nan Lok, Philip, Mr. Cai Jianjiang, Mr. Fan Cheng, Mr. Hu Hung Lick, Henry*, Mr. Zhang Ke*, Mr. Jia Kang* and Mr. Fu Yang*.
* Independent non-executive director of the Company
This information is provided by RNS
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