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29/12/2015 Press release

Total Tianjin Manufacturing Company Limited signed a win-win "Tax Compliance Agreement" with Tax Authority

On December 01, 2015, Total Tianjin Manufacturing Company Limited (hereinafter referred to "TTM") signed a “Tax Compliance Agreement” with the State Administration of Taxation (SAT) Tianjin Free Trade Zone (FTZ). The relevant governmental leaders and Total officers jointly attended the signing ceremony. LIU Xuefei, Deputy Director of Tianjin Port FTZ & Tianjin Airport Economic Area Administration Committee, Development and Reform Bureau; LIU Guiying, Deputy Director of SAT Tianjin FTZ, and ZHU Yujie, Director of SAT International Tax Management Division, LIANG Ting-Wee, President of Total (China) Investment, Lesley BAXTER, Vice-President of Total (China) Investment, and Patrice DEVEMY, Managing Director of Total Lubricants China. Both sides reached an agreement on the matters of related transactions. TTM will benefit from the high-quality and efficient personalized tax service provided by the tax authority. As the first show case of “Tax Compliance Agreement” signed within Tianjin FTZ, which will be a milestone to TTM and Tianjin Port FTZ.

During the signing ceremony, Mrs. LIU Guiying, Deputy Director of SAT Tianjin FTZ and Mr. Patrice DEVEMY, Managing Director of Total Lubricants China jointly signed the “Tax Compliance Agreement", which marked that TTM and SAT Tianjin FTZ agreed on the pricing principles and calculation methods for related transactions, reaching a consensus to a high level of corporate profits. The tax authority gave TTM a credit for its contribution to the tax work of Tianjin municipality, and expressed to continuously provide tax policy support for the company, further optimizing the service and improving the taxation environment.

The “Tax Compliance Agreement” is a new method of tax service for the tax authority, which defines the rights and obligations of two parties in the principle of fairness, equality, voluntary and honesty. Mr. LIU Xuefei, Deputy Director of Tianjin Port FTZ & Tianjin Airport Economic Area Administration Committee, Development and Reform Bureau, expressed in his speech at the signing ceremony, “The achievements of Economic Development in the Free Trade Zone cannot be separated from the support of the vast number of enterprises in the zone. Now, TTM is building the phase-II project of grease plant. We believe that TTM will definitely become stronger with full use of the comprehensive strength from Tianjin Port FTZ and Tianjin Airport Economic Zone."

Mr. ZHU Yujie, Director of SAT International Tax Management Division also said, “As a multinational energy company, Total Group fully respect the tax compliance in the initial operation of its subsidiary, which shows the foresight and sagacity of the operator, also reflects the responsible attitude of Total as a multinational company in the issues of tax compliance. We hope that Total Group and also TTM will get better and stronger in the future!"

In his speech at the signing ceremony, Mr. LIANG Ting-Wee, President of Total (China) Investment Co., Ltd, expressed his thank to the governmental authorities for their strong support, and expressed: " Today, we sign the Tax Compliance Agreement in Tianjin FTZ, which encourages us greatly. We have experienced the innovative service concept of Tianjin government and Tianjin Free Trade Zone, which more strengthen our confidence in the investment in Tianjin, in China."

Mr. Patrice DEVEMY, Managing Director of Total Lubricants China, introduced: "Our Tianjin plant was operated by late 2013, is continuous growth, meanwhile, a brand-new grease plant which is under construction will put into operation in middle of 2016. We are delighted to get great support from the Free Trade Zone, both from Business Development and Tax Bureau. Today, the signing of the Tax Compliance Agreement results in the effective management of related transaction risks for TTM. So far, we have fully felt the innovative service concept of SAT Tianjin Free Trade Zone, and really experienced the convenience brought by tax compliance to the management of enterprise tax risk. Such a Tax Compliance Agreement allows us to put our energy into the business development with no concerns, achieving the healthy growth of the enterprise."

In Tianjin, it is still the first case to successfully sign the Tax Compliance Agreement, which not only can achieve the goal to jointly control tax risk and establish a sample and demonstration of good faith tax payment, but also is conducive to improving the efficiency of tax management for large enterprises, ensuring the stable tax contribution to Tianjin FTZ to achieve the win-win situation between enterprise and tax authority.