Interim Regulations on Resource Tax of the People's Republic of China (Revised in 2011)

Order of the State Council No. 605

September 30, 2011

Promulgated according to Order of the State Council No. 139, revised according to the Decision of the State Council on Amendment to the Interim Regulations on Resource Tax of the People's Republic of China dated September 30, 2011)

Article 1 Units and individuals that engage in mineral exploration or salt production provided herein within the territory and territorial waters of the People's Republic of China (hereinafter referred to as "exploration or production of taxable products") shall be taxpayers subject to the resource tax and shall pay resource tax in accordance with these Regulations.

Article 2 Tax category items and rates of resource tax shall be subject to the Resource Tax Categories and Rates Schedule attached hereto and the relevant provisions of the Ministry of Finance.
Partial adjustments to tax categories and rates shall be subject to the decision of the State Council.

Article 3 Specific tax rates applicable to the taxpayer shall be established by the Ministry of Finance under consultation with the relevant departments of the State Council within the range of rates provided in the Resource Tax Categories and Rate Schedule attached hereto, with a view to the resource grade and mining conditions relating to the taxable products explored or produced by the taxpayer. In regard to the other nonmetalliferous ore and non-ferrous metal ore whose names are not specified and whose concrete applicable rates are not determined, the relevant rates applicable to the above-mentioned ores shall be determined by the people's governments of the provinces, autonomous regions and municipalities under direct central government in view of actual situations, and shall be filed with the Ministry of Finance and State Administration of Taxation for record.

Article 4 The payable amount for resource tax shall be calculated according to the Ad valorem method or the specific duty method respectively, namely, the sales amount of the taxable products multiplied by the pro rata rate specifically applicable to the taxpayer, or the sales quantities of the taxable products multiplied by the fixed rate specifically applicable to the taxpayer.

Article 5 If the taxpayer engages in exploration or production of taxable products under different tax categories, it shall separately calculate the sales amount and sales quantities of taxable products under different tax categories; if it is unable to provide the accurate sales amount and sales quantities of taxable products under different tax categories, the high tax rates shall apply.

Article 6 The taxpayer that engages in exploration or production of taxable products for own use in its continuous production of taxable products shall be exempt from resource tax; the own use of taxable products for other purposes shall be deemed as sales and shall be subject to resource tax in accordance with these Regulations.

Article 7 Those that fall into one of the following circumstances shall be subject to reduced resource tax or exempt from resources tax:
1. Crude oil used for well heating and repairing shall be exempt from tax.
2. If the taxpayer has suffered heavy losses due to unexpected accidents or natural disasters in the course of exploration or production of taxable products, the people's governments of the provinces, autonomous regions and municipalities under direct central government shall in their own discretion decide to grant tax reduction or exemption.
3. Other tax reduction and/or exemption items provided by the State Council.

Article 8 The taxpayer shall separately account for sales amount or sales quantities in respect of tax reduction and/or exemption items; those without separate accounting or unable to provide the accurate sales amount or sales quantities shall not be granted tax reduction or exemption.

Article 9 In its sales of taxable products, the taxpayer's taxation obligation shall arise on the current date on which it has collected the sales payment or has obtained the receipt evidencing the collection of sales payment; for taxable products from in-situ production for own use, the taxpayer's taxation obligation shall arise on the current date on which such products are being transferred and delivered for use.

Article 10 Resource tax shall be levied by the taxation authority.

Article 11 The unit that acquires untaxed mineral products shall be the resource tax withholding obligor.

Article 12 The Resource Tax payable by taxpayers shall be paid to the local competent tax authorities where the taxable products are explored or produced. For taxpayers exploring or producing taxable products within the boundaries of their own provinces, autonomous regions and municipalities under direct government, any necessary adjustments to the tax payment location shall be determined by the tax authorities of the provinces, autonomous regions and municipalities under direct government.

Article 13 The assessable periods for taxpayers shall be one day, three days, five days, ten days, fifteen days or one month, specific assessable period shall be determined by the competent tax authorities according to the actual circumstances; tax that cannot be assessed in regular fixed periods may be assessed on a transaction-by-transaction basis.
Taxpayers that adopt one month as an assessable period shall report and pay tax within ten days following the end of the period. If an assessable period of one day, three days, five days, ten days or fifteen days is adopted, the tax shall be prepaid within five days following the end of the period and a monthly return shall be filed with any outstanding balance of tax due settled within ten days from the first day of the following month.
The tax payment deadlines for withholding obligors shall be determined with reference to the stipulations of the above two paragraphs.

Article 14 The collection and administration of Resource Tax shall be conducted in accordance with the relevant regulations of the Law of the People's Republic of China on Tax Collection and Administration and these Regulations.

Article 15 The detailed rules for implementation of these Regulations shall be formulated by the Ministry of Finance and State Administration of Taxation.

Article 16 These Regulations shall come into effect as of January, 1, 1994. The Resource Tax Regulations of the People's Republic of China and the Salt Tax Regulations of the People's Republic of China promulgated by the State Council on September 18, 1984 shall be repealed on the same date.

Appendices: Resource Tax Taxable Items and Tax Rate Range Table