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  "documentTitle": "New Oriental Education & Technology Group (EDU)",
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  "notes": "The slide discusses the structural and regulatory challenges of NRRR schools, including ownership rights, MOE/CAB oversight, and the tax status of EDU's Beijing operations.",
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      "kind": "callout",
      "text": "In Reality the BJ Operation Is Required to Pay EIT Because Its Revenue is Deemed “For-Profit”.",
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      "text": "The only possible reason why EDU’s Beijing subsidiary would not be paying Enterprise Income Tax is because it is not turning a profit. PRC tax law makes it clear that no EIT exemption is available to the BJ Operation because its revenue is deemed “for-profit”.",
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      "text": "NRRRs do not necessarily receive tax exemptions. NRRRs may apply for EIT exemptions on their non-profit income.",
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      "text": "The Private School Law provides for two categories of privately-funded schools: “requiring reasonable returns” and “not requiring reasonable returns” (“NRRR”).",
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      "text": "EDU and most other school investors established NRRR schools. MOE seems to discriminate against applications to establish schools requiring reasonable returns...",
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      "text": "In EDU’s 20-F, it states that EDU has “restricted net assets” amounting to $285.8 million as of FY2011.",
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      "text": "14 EDU FY2011 20-F, p. 57.",
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