Nolato has been given the green light to keep its high-tech status for the 2011-2013 financial years, and will therefore maintain an income tax rate of 15% in China during these years. Reported tax expenses for 2011 are therefore in line with the decision.
During the period 2008-2010, Nolato has held high-tech status in China, which has involved an income tax rate of 15%. This can be compared with the normal tax rate of 25% for companies in China.
At the end of 2010, Nolato applied for an extension of its high-tech status for the period 2011-2013. The application documents have been reviewed by the Chinese tax authority during 2011.
In 2011, Nolato has reported Group tax expenses based on a renewal of its high-tech status, i.e. based on a tax rate of 15% in China.