(Adopted by the 12th Executive Meeting of the State Council on November 26, 1993, promulgated by Decree No.139 of the State Council of the People's Republic of China on December 25, 1993, and effective on January 1, 1994)
All units and individuals which and who, in the territory of the People's Republic of China, exploit mineral products and produce salts (hereinafter referred to as "exploiting or producing taxable products") set out in this Regulation, shall be the taxpayers of resource tax (hereinafter referred to as "taxpayers") and should pay the resource tax in accordance with this Regulation.
Taxable items and tax amounts applicable to the resource tax shall be in conformity to the Resource Tax Schedule of Taxable Items and Tax Amount Range appended to this Regulation and to the relevant regulations of the Ministry of Finance.
Any adjustment to taxable items and tax amount ranges shall be made only by the State Council.
The specific tax amount applicable to the taxpayer shall, within the tax amount range set out, be determined by the Ministry of Finance in accordance with the resource situation of the taxable products exploited or produced by the taxpayer after consulting departments concerned of the State Council.
The taxpayer exploiting or producing taxable products under different taxable items shall separately calculate their assessable volume of taxable products under different taxable items; if he fails to make such calculation or fails to accurately provide such volume, the highest tax amount shall apply.
The tax amount payable for the resource tax shall be assessed in accordance with the assessable volume of taxable products and the prescribed unit tax amount. Its formula is as follows:
Tax Amount Payable = Assessable Volume X Unit Tax Amount
The assessable volume of resource tax shall be --
1. the sales volume for the taxpayer exploiting or producing taxable products for sale; or
2. the private use volume for the taxpayer exploiting or producing taxable products for private use.
The reduction or exemption from the resource tax shall be granted under one of the following circumstances:
1. Crude oil used for heating or repairing wells in the course of exploiting crude oil shall be totally relieved from tax.
2. The taxpayer suffering heavy loss due to such reasons as accidents or
natural disasters in the course of exploiting or producing taxable products shall be reduced or exempted from tax by the people's government of province, autonomous region or municipality directly under the Central Government according to the actual situation.
3. Other reduction or exemption as prescribed by the State Council.
The taxpayer shall calculate his assessable volume for the reduction or exemption separately; if he fails to make such calculation or fails to accurately provide such volume, no reduction or exemption shall be granted therefor.
For the taxpayer selling taxable products, the time at which the liability for paying tax arises shall be the date on which the sales money is received or document of right to collect the sales money is obtained; for self-produced and self-used taxable products, the time at which the liability for paying tax arises shall be the date on which the products are transferred for use.
The resource tax shall be collected by the tax authority.
The units purchasing untaxed mineral products shall be the resource tax withholding agents.
The taxpayer shall pay the resource tax chargeable to the competent tax authority in the place where the taxable product is exploited or produced. Any change of the place of payment for the taxpayer exploiting or producing the taxable product within the confines of his own province, autonomous region or municipality directly under the Central Government shall be made by the tax authority of the province, autonomous region or municipality directly under the Central Government concerned.
The period for which payment of the resource tax shall be one day, three days, five days, ten days, fifteen days or one month, and the actual period applicable to the taxpayer shall be ratified by the competent tax authority according to the actual situation. The taxpayer who cannot make a regular payment may pay the tax on a transaction-by-transaction basis.
In the period of one month, the taxpayer shall pay the tax within 10 days following the end of the period; and in the period of one day, three days, five days, ten days or fifteen days, the taxpayer shall prepay the tax within five days following the end of the period and a monthly tax return shall be filed with any balance of tax due settled within ten days from the first day of the next month.
The period for which payment of the tax can be made by the withholding agent shall be governed by applying mutatis mutandis the provisions of the two preceding paragraphs.
The administration of resource tax collection shall be governed by the relevant provisions of the Law of the People's Republic of China on the Administration of Collection of Tax and this Regulation.
The Ministry of Finance is responsible for the interpretation of this Regulation and shall formulate the rules for implementing it.
This Regulation shall enter into force on January, 1, 1994. The Regulation of the People's Republic of China on Resource Tax (Draft) and the Regulation of the People's Republic of China on Salt Tax (Draft), promulgated by the State Council on September 18, 1984, shall be repealed on the same date.
Appendix: Resource Tax Schedule of Taxable Items and Tax Amount Range
Taxable Items Tax Amount Range
1. Crude Oil 8 - 30 yuan /ton
2. Natural Gas 2 - 15 yuan /kilo-cubic meter
3. Coal O.3 - 5 yuan/ton
4. Other Raw Non-metal Minerals 0.5 - 20 yuan/ton or cubic meter
5. Raw Ferrous Metals 2 - 30 yuan/ton
6. Raw No-ferrous Metals 0.4 - 30 yuan/ton
Solid Salt 10 - 60 yuan/ton
Liquid Salt 2 - 10 yuan/ton
This translation, together with any explanatory material, is provided courtesy of Lehman Tax & Accounting.