Provisional Regulations on Resource Tax of the People’s Republic of China

（Promulgated on Order [1993] No. 139 of the State Council on Dec. 25, 1993）

Article 1 Any organization or individual engaged in the exploitation of the mineral products provided in these Regulations or the production of salt (hereinafter referred to as "exploiting or producing taxable products) within the territory of the People's Republic of China shall be a taxpayer of resource tax (hereinafter referred to as "taxpayer") and shall pay resource tax in accordance with the provisions of these Regulations.

Article 2 Resource tax shall be paid according to the taxable items and the tax amount in accordance with the "Table of Taxable Items and Tax Amount Range" in the appendix to these Regulations and the relevant regulations of the Ministry of Finance.

Further readjustments of the taxable items and taxable amount range shall be determined by the State Council.

Article 3 The tax amount payable for a specific taxpayer shall be determined within the range prescribed by the Ministry of Finance through consultation with the relevant departments of the State Council in light of the state of the resources of the taxable products exploited or produced by the taxpayer.

Article 4 A taxpayer exploiting or producing products of different taxable items shall assess the taxable volume of the products of different taxable items separately; in case of failure to assess them separately or to provide accurate taxable amounts of taxable products of different taxable items, the highest tax amount shall be adopted.

Article 5 The amount of resource tax payable shall be assessed on the basis of the taxable volume of the taxable products and the prescribed unit of tax amount. The formula for computing the amount of tax payable is as follows:

Amount of tax payable = the taxable volume X unit of tax amount

Article 6 The taxable volume for resource tax:

1. In the case of a taxpayer engaged in the exploitation or production of taxable products for sale, the sales volume shall be the taxable volume.

2. In the case of a taxpayer engaged in the exploitation or production of taxable products for self use, the volume for self use shall be the taxable volume.

Article 7 Resource tax shall be reduced or exempted in one of the cases cited below:

　

1. In the case of the crude oil that is used for heating or for well repair in the course of crude oil exploitation, tax is exempted.

2. In case a taxpayer suffers heavy losses from accidents, natural calamities or other causes in the course of the exploitation or production of the taxable products, the people's government of a province, autonomous region and municipality directly under the State Council shall permit tax reduction or exemption in view of the actual situation.

3. Other items entitled to tax reduction or exemption as prescribed by the State Council.

Article 8 A taxpayer shall assess the taxable volume of the items for tax reduction or exemption separately; failure to make separate assessments or accurate assessments shall not warrant tax reduction or exemption.

Article 9 For a taxpayer in marketing taxable products, tax liability incurs on the day the payment for the sales or a bill payable for the sales is received; in the case of the taxable products for self use, the day the products are dispatched for use shall be the time tax liability arises.

Article 10 Resource tax shall be collected by the tax authorities.

Article 11 An institution purchasing pre-tax mineral products shall be the withholder of resource tax payments.

Article 12 A taxpayer shall pay resource tax payable to the local tax authorities where the taxable products are exploited or produced. In case a taxpayer engaged in the exploitation or production of taxable products within the local province, autonomous region or municipality under the State Council needs to change the place for paying tax, it shall be determined by the tax authorities of that province, autonomous region or municipality.

Article 13 The tax authorities shall determine the time limit for payment of resource tax by a taxpayer to 1 day, 3 days, 5 days, 10 days, 15 days or 1 month in light of the actual conditions. Should tax assessment not possibly be made for tax payment at fixed intervals, a taxpayer shall pay tax payable on each batch of products.

In the case of tax payment to be made every month, the taxpayer shall file tax returns within ten days after the end of each interval; should the interval for tax payment be one day, three days, five days, ten days or 15 days, an advance shall be paid within five days after the end of each interval and tax returns shall be filed and tax payments cleared within the first ten days of the next month.

A withholder shall hand to the tax authorities the tax payment he has withheld within the time limit with reference to the previous provisions.

Article 14 The resource tax shall be administered in accordance with the provisions of the Law of the People's Republic of China on Tax Administration and the relevant provisions of these Regulations.

Article 15 The Ministry of Finance shall be responsible for the interpretation of these Regulations and formulate the rules for the implementation thereof.

Article 16 These Regulations shall come into force as from January 1, 1994. The "Regulations of the People's Republic of China on Resource Tax (Draft)" and the "Regulations of the People's Republic of China on Salt Tax (Draft)" promulgated by the State Council on September 18, 1984 shall be abrogated therefrom.

Appendix:

Table of Taxable Items and Range of Tax amount of Resource Tax