SHANGHAI, Nov. 20 -The Ministry of Finance has released two circulars clarifying the scope of tax-exempt income and tax-exemption identification for non-profit organizations (NGOs).

On the circular on tax-exempt income, there are five types of income considered as tax-exempt income for NGOs including money donated by individuals, units, and government subsidies. In addition, companies that qualify for the exemptions must be institutions, NGOs and foundations legally established and registered in the country according to another circular on recognizing qualifications.

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