The institution is not a VAT taxpayer. According to Article 9 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax, the units mentioned in Article 1 of the Regulations refer to enterprises, administrative units, institutions, military units, social organizations and other units. Therefore, administrative institutions that provide labor services, transfer intangible assets or sell real estate stipulated in the business tax regulations belong to business tax taxpayers and should pay business tax according to law.

Article 5 of the Notice of the Ministry of Finance on Certain Tax Exemption Policies for Personal Financial Commodity Trading in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) stipulates that administrative fees and government funds that meet the following conditions are temporarily exempt from business tax.