Laws of the People's Republic of China

Whole Doc.Article 1

All units and individuals engaged in the exploitation of mineralproducts as prescribed in these Regulations or production of salt withinthe territory of the People's Republic of China (hereinafter referred toas `exploiting or producing taxable products') are taxpayers of ResourceTax (hereinafter referred to as `taxpayers') and shall pay Resource Tax inaccordance with these Regulations.Article 2

The taxable items and tax amounts of Resource tax shall be determinedin accordance with the attached to these Regulations as well as the relevant stipulationsof the Ministry of Finance.

Any adjustments to the taxable items and tax amount range shall bedetermined by the State Council.Article 3

The specific tax amount applicable to taxpayers shall be determined.within a prescribed tax amount range, by the Ministry of Finance inconsultation with the relevant departments of the State Council inaccordance with the resource situation of the taxable products exploitedor produced by taxpayers.Article 4

Taxpayers exploiting or producing taxable products under differenttaxable items. The assessable volume of the taxable products underdifferent taxable items shall be accounted for separately. If theassessable volume of the taxable products under different taxable itemshas not been accounted for separately or cannot be accurately provided,the higher tax amount shall apply.Article 5

The tax payable for Resource Tax shall be computed in accordance withthe assessable volume of the taxable products and the prescribed unit taxamount. The formula for computing the tax payable is as follows:

Tax payable = Assessable volume x Unit tax amountArticle 6

The assessable volume of Resource Tax is as follows:

(1) For taxpayers exploiting or producing taxable products for

sale, the sales volume shall be the assessable volume.

(2) For taxpayers exploiting or producing taxable products for ownuse, the self-used volume shall be the assessable volume.Article 7

Resource Tax shall be reduced or exempt under any one of thefollowing circumstances:

(1) Crude oil used for heating or repairing wells in the course ofexploiting crude oil shall be exempt.

(2) For taxpayers sustaining huge losses due to such reasons asaccidents or natural disasters in the course of exploiting or producingtaxable products, tax reduction or exemption shall be determined at thediscretion of the People's governments of the provinces, autonomousregions or municipalities directly under the central government.

(3) Other tax reduction or exemption items as stipulated by the StateCouncil.Article 8

The assessable volume of the tax reduced or exempt items of thetaxpayer shall be accounted for separately. If the assessable volume hasnot been accounted for separately or cannot be accurately provided, noreduction or exemption shall be granted.Article 9

For taxpayers selling taxable products, the time at which the taxliability arises shall be the day on which the sales sum is received ordocumented evidence of right to collect the sales sum is obtained. Forself-produced taxable products for own use, the time at which the taxliability arises shall be the day on which the products are removed foruse.Article 10

Resource Tax shall be collected by the tax authorities.Article 11

The units purchasing untaxed mineral products shall be the ResourceTax withholding agent.Article 12

The Resource Tax payable by taxpayers shall be paid to the localcompetent tax authorities where the taxable products are exploited orproduced. For taxpayers exploiting or producing taxable products withinthe boundaries of their own provinces, autonomous regions andmunicipalities, any adjustments in the tax payment location shall bedetermined by the tax authorities of the provinces, autonomous regions andmunicipalities.Article 13

The assessable period for taxpayers shall be one day, three days,five days, ten days, fifteen days or one month to be determined by thecompetent tax authorities according to the actual circumstances; tax thatcannot be assessed in regular periods may be assessed on atransaction-by-transaction basis.

Taxpayers that adopt one month as an assessable period shall reportand pay tax within ten days following the end of the period. If anassessable period of one day, three days, five days, ten days or fifteendays is adopted, the tax shall be prepaid within five days following theend of the period and a monthly return shall be filed with any balance oftax due settled within ten days from the first day of the following month.

The tax payment deadlines for withholding agents shall be determinedwith reference to the stipulations of the above two paragraphs.Article 14

The collection and administration of Resource Tax shall be conductedin accordance with the relevant regulations of the and theseRegulations.Article 15

The Ministry of Finance shall be responsible for the interpretationof these Regulations and for the formulation of the Detailed Rules andRegulations for the implementation of these Regulations.Article 16

These Regulations shall come into effect from January, 1, 1994. The andthe promulgated by the State Council on September 18, 1984 shall be repealedon the same date.

RESOURCE TAX TAXABLE ITEMS AND TAX AMOUNT RANGE TABLE

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Taxable

Items Tax Amount Range

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1. Crude oil 8-30 yuan/ton

2. Natural gas 2-15 yuan/1000 cubic metres

3. Coal 0.3-5 yuan/ton

4. Other non-metal ores 0.5-20 yuan/ton or one cubic metre

5. Ferrous metal ores 2-30 yuan/ton

6. Non-ferrous metal ores 0.4-30 yuan/ton

7. Salt

Solid salt 10-60 yuan/ton

Liquid salt 2-10 yuan/ton

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