China's Ministry of Finance (MOF) and State Administration of Taxation (SAT) just released a circular to define relevant tax policy of gold futures trading.

   According to the circular, as of January 1 this year, standard gold sold by members and clients of Shanghai Futures Exchange through the exchange was exempted from value-added tax  (VAT) if physical delivery occurred with gold not moved out of the treasury. If gold is delivered and moved out of the treasury, tax authorities will issue VAT special invoice, according to real delivery price, and the paid VAT will be returned right after collection.

   Besides, the urban maintenance and construction tax and educational surtax are exempted.

   Standard gold refers to AU9999, AU 9995, AU 999 and AU995 gold with specifications of 50g, 100g, 1kg, 3kg and 12.5kg.