Skip to main content

Resource Tax

9 Resource Tax

TAXPAYERS

TAXABLE ITEMS AND TAX PER UNIT

COMPUTATION METHODS

TAX REDUCTIONS AND EXEMPTIONS

TIME LIMIT AND PLACE FOR TAX PAYMENT

Aimed at protecting State-owned natural resources, and improving the reasonable development and utilization of such resources, Resource Tax is levied in China on specified natural resources in such a manner as to adjust for income differentials arising from grade differences in various natural resources. The Provisional Regulations of the People's Republic of China on Resource Tax currently in force were promulgated by the State Council on December 25, 1993, and came into effect from January 1, 1994.

Resource Tax is administered by the State Administration of Taxation (SAT) and the local tax bureaus. The revenue collected is shared between the Central Government and the local governments. In 2003, revenue from Resource Tax amounted to 8.31 billion yuan, accounting for 0.4% of the country's total tax revenue.

TAXPAYERS

Entities and Activities Subject to Tax

Where the following entities engage in the exploitation of taxable mineral products or the production of salt within the territory of China, they shall be subject to Resource Tax.

  • State-owned enterprises (SOEs), collective enterprises, private enterprises, joint-equity enterprises, enterprises with foreign investment, foreign enterprises, and other enterprises.
  • Administrative units, institutions, military units, social organizations, and other units.
  • Individual business operators and other individuals.

Withholding Agents

Independent mines, joint enterprises, and other units that purchase untaxed mineral products shall be the withholding agents for Resource Tax.

Special Instances

  • Sino-foreign joint ventures: Under the present regulations, mining district use fees, rather than Resource Tax, are levied on oil and natural gas extracted by Sino-foreign joint ventures.

Revenue Breakdown

At present, tax revenue comes mainly from SOEs, collectively-owned enterprises, private enterprises, and joint-equity enterprises engaged in the exploitation of crude oil, iron ores, and coal, and in the production of salt.

TAXABLE ITEMS AND TAX PER UNIT

Items Subject to Tax

Currently, there are seven main categories of taxable items.

Crude Oil

The exploitation of natural crude oil is subject to tax. Artificial oil is not subject to tax.

Natural Gas

Natural gas that is specially exploited or that is exploited together with crude oil is subject to tax. Natural gas from coal mining is not taxed provisionally.

Coal

Raw coal is subject to tax. Coal washing, coal dressing, and other coal products are not subject to tax.

Other Non-Metal Ores

Examples include gems, diamonds of gem grade, jade stones, bentonite, graphite, quartz sand, fluorite, barite, witherite, vermiculite, feldspar, zeolite, talc, dolomite, wollastonite, attapulgite clay, kaolinite, refractory clay, mica, marble, granite, limestone, magnesite, natural alkali, gypsum, sillimanite, diamonds for industry use, asbestos, iron sulfate, natural sulfur, and iron phosphorus.

Ferrous Metal Ores

Iron ores, manganese ores, and chromium ores fall into this category.

Non-Ferrous Metal Ores

Examples include copper ores, lead and zinc ores, bauxite ores, tungsten ores, tin ores, antimony ores, molybdenum ores, nickel ores, and gold ores.

Salt

This category can be divided into two subcategories.

  • Solid salt:This includes raw sea salt, raw lake salt, and shaft salt.
  • Liquid salt (brine).

Tax per Unit

Computation is quantity-based and tax payable is calculated by applying the relevant tax per unit. For details, see Table 9.1.

Table 9.1 Taxable items and tax amount ranges
Taxable item Tax amount range
1. Crude oil8–30 yuan/ton
2. Natural gas2–15 yuan per 1,000 m3
3. Coal0.30–5.00 yuan/ton
4. Other non-metal ores0.50–20.00 yuan/ton or m3
5. Ferrous metal ores2–30 yuan/ton
6. Non-ferrous metal ores0.4–30.0 yuan/ton
7. Salt
Solid salt
Liquid salt
10–60 yuan/ton
2–10 yuan/ton

Determination of Tax Amounts

The specific tax amount per unit applicable to the taxpayers shall be determined, within a prescribed range, by the Ministry of Finance in consultation with the relevant departments of the State Council, after considering the state of the resources from which the taxable products are exploited or produced by the taxpayers.

The tax amounts relating to various resources shall be adjusted from time to time by the Ministry of Finance in accordance with the state of the resources in question and the exploitation conditions. For details, see Table 9.2.

Any adjustments to the taxable items or tax amount must be approved by the State Council.

Table 9.2 Subsidiary schedule of taxable items and tax amount ranges
Taxable item  Tax amount Taxable unit
Notes:
1. Shengli Oil Administration Bureau has been renamed as China Petro-Chemical Shengli Oil Well Company Limited. The tax per unit has been adjusted to 14 yuan/ton.
2. Xinjiang Oil Administration Bureau, Talimu Oil Exploitation Centre, and Tuha Oil Exploration and Exploitation Centre are now known as Xinjiang Oil Branch Company, Talimu Oil Branch Company, and Tuha Oil Branch Company of China Oil and Gas Company Limited, respectively. The tax per unit has been adjusted to 24 yuan/ton. The tax per unit for Henan Oil Exploration Bureau has been reduced temporarily to 8 yuan/ton.
3. Under current rules, the tax per unit for the wells in Jilin Province is 12 yuan/ton.
4. Under current rules, the tax per unit for China Petro-Chemical Xinxing Company, Xibei Oil Administration Bureau, Changqing Branch of China Oil and Gas Company Limited, and other oil exploitation enterprises in Yanan City and Yulin City in Shaanxi Province is 12 yuan/ton.
5. The exploration and sales of natural gas department of Sichuan Oil Administration Bureau has been reorganized into Xinan Oil and Gas Company of China Petroleum and Natural Gas Company Limited. The Chuandong natural gas mines of this company are now subject to a reduced tax per unit of 13 yuan per 1,000 m3. The Chuannan, Chuanxi, and Chuanbei natural gas mines are subject to a tax per unit of 10 yuan per 1,000 m3.
6. Under current rules, the tax per unit for Changqing Branch of China Oil and Gas Company Limited is 10 yuan per 1,000 m3. The tax per unit for Chuanxi Exploitation and Transportation Division and Chuanbei Exploitation and Transportation Division of China Petro-Chemical Xinxing Company, Sichuan Deyang Xinchang Gas Exploitation Company, Deyang Lianyi Company, and Chengdu Longxing Company is 8 yuan per 1,000 m3.
7. The tax per unit for some coal mines in Shanxi Province has been adjusted to 3.2 yuan/ton.
8. The tax per unit for some coal mines in Inner Mongolia and Qinghai Province is 2.3 yuan/ton.
9. The tax per unit for some coal mines under Zibo Mine Administration Bureau, Feicheng Mining Administration Bureau, and Linyi Mining Administration Bureau is 1.2 yuan/ton.
10. The tax per unit for some coal mines in Fuyuan County of Shaanxi Province is 2 yuan/ton.
11. The tax per unit for coal mines within Yulin City and Yanan City and coals in the Xianyang Binchang and Xundong mining districts of the Qinghai province has been adjusted to 2.3 yuan/ton. The tax per unit for Huangling City has been adjusted to 1 yuan/ton.
12. Under current rules, the tax per unit for marble and granite is 3–10 yuan per m3.
13. Under current rules, the tax per unit for limestone is 0.50–3.00 yuan/ton.
14. Under current rules, the tax per unit for sheep fat jade stone exploited in Yunnan Province is 20 yuan/m3, and the tax per unit for quartzose sandstone (graining-board stone) exploited in Wuding County and Luquan County is 10 yuan/ton.
15. Under current rules, the tax per unit for molybdenum ores of grades 1 and 2 is 0.8 yuan/ton and 0.7 yuan/ton, respectively.
16. Under current rules, the tax per unit for sea salt in the north has been reduced to 20 yuan/ton. The tax per unit for sea salt in Jiangsu has been reduced to 12 yuan/ton.
I. Crude oil Daqing Oil Administration Bureau24 yuanTon
Shengli Oil Administration Bureau1
Liaohe Oil Administration Bureau
Dagang Oil Administration Bureau
Henan Oil Administration Bureau
Xinjiang Oil Administration Bureau
Talimu Oil Exploitation Centre
Tuha Oil Exploration and Exploitation Centre2
12 yuanTon
Huabei Oil Administration Bureau
Jilin Provincial Oil Well Administration Bureau3
Zhongyuan Oil Exploration Bureau
Jiangsu Oil Administration Bureau
Changqing Oil Exploration Bureau
Jidong Oil Exploration Development Corporation
Jianghan Oil Administration Bureau
Yumen Oil Administration Bureau
Qinghai Oil Administration Bureau
Sichuan Oil Administration Bureau
Yunan, Guizhou and Guangxi Area Oil Exploration Bureau
Yanchang Oil Mining Administration Bureau
Other onshore oil exploitation enterprises4
8 yuanTon
Condensed oil and highly condensed oil8 yuanTon
Offshore oil exploitation enterprises8 yuanTon
II. Natural gas Sichuan Oil Administration Bureau515 yuan1,000 m3
Daqing Oil Administration Bureau12 yuan1,000 m3
Shengli Oil Administration Bureau
Liaohe Oil Exploration Bureau
8 yuan1,000 m3
Huabei Oil Administration Bureau
Dagang Oil Administration Bureau
Zhongyuan Oil Exploration Bureau
Henan Oil Exploration Bureau
Xinjiang Oil Administration Bureau
Jidong Oil Exploration Development Corporation
Talimu Oil Exploitation Centre
Tuha Oil Exploration and Development Centre
Jilin Oil Well Administration Bureau
4 yuan1,000 m3
Other natural gas exploitation enterprises62 yuan1,000 m3
III. Coal Those under the direct control of the Central Government
Beijing Mining Administration Bureau0.50 yuanTon
Kailuan Mining Administration Bureau0.55 yuanTon
Fengfeng Mining Administration Bureau0.50 yuanTon
Jingjing Mining Administration Bureau0.40 yuanTon
Xinglong Mining Administration Bureau0.40 yuanTon
Xingtai Mining Administration Bureau1.20 yuanTon
Handan Mining Administration Bureau0.80 yuanTon
Datong Mining Administration Bureau72.40 yuanTon
Yangquan Mining Administration Bureau0.80 yuanTon
Xiahuayuan Coal Mine0.50 yuanTon
Babaoshan Coal Mine0.50 yuanTon
Xishan Mining Administration Bureau0.80 yuanTon
Fenxi Mining Administration Bureau1.20 yuanTon
Lu an Mining Administration Bureau2.00 yuanTon
Hangang Mining Administration Bureau0.50 yuanTon
Jincheng Mining Administration Bureau2.00 yuanTon
Baotou Mining Administration Bureau80.40 yuanTon
Wuda Mining Administration Bureau0.40 yuanTon
Bohaiwan Coal Mine0.30 yuanTon
Baorixile Coal Mine0.30 yuanTon
Pingzhuang Mining Administration Bureau0.30 yuanTon
Zhalainuoer Mining Administration Bureau0.30 yuanTon
Huolinhe Coal Mine0.30 yuanTon
Yiminhe Coal Mine0.30 yuanTon
Dayan Mining Administration Bureau0.30 yuanTon
Pingxiang Mining Administration Bureau0.50 yuanTon
Fengcheng Mining Administration Bureau0.80 yuanTon
Yinggangling Mining Administration Bureau0.60 yuanTon
Luoshi Mining Administration Bureau0.30 yuanTon
Zibuo Mining Administration Bureau90.50 yuanTon
Xinwen Mining Administration Bureau0.90 yuanTon
Zaozhuang Mining Administration Bureau1.20 yuanTon
Feicheng Mining Administration Bureau90.90 yuanTon
Yanzhou Mining Administration Bureau1.20 yuanTon
Fangzi Coal Mine0.50 yuanTon
Longkou Mining Administration Bureau0.50 yuanTon
Linyi Mining Administration Bureau90.70 yuanTon
Chenghe Mining Administration Bureau0.50 yuanTon
Cuijiagou Coal Mine0.60 yuanTon
Yaojie Mining Administration Bureau0.40 yuanTon
Jingyuan Mining Administration Bureau0.30 yuanTon
Agan Town Coal Mine0.30 yuanTon
Shizuishan Mining Administration Bureau0.40 yuanTon
Shitanjing Mining Administration Bureau0.40 yuanTon
Huainan Mining Administration Bureau0.80 yuanTon
Huaibei Mining Administration Bureau0.90 yuanTon
Hami Mining Administration Bureau0.30 yuanTon
Urumqi Mining Administration Bureau0.30 yuanTon
Aiwei' ergou Coal Mine0.40 yuanTon
Fushun Mining Administration Bureau0.60 yuanTon
Fuxin Mining Administration Bureau0.40 yuanTon
Beipiao Mining Administration Bureau0.30 yuanTon
Shenyang Mining Administration Bureau0.30 yuanTon
Liaoyuan Mining Administration Bureau0.50 yuanTon
Tonghua Mining Administration Bureau0.40 yuanTon
Shulan Mining Administration Bureau0.30 yuanTon
Huichun Mining Administration Bureau0.30 yuanTon
Jixi Mining Administration Bureau0.50 yuanTon
Hegang Mining Administration Bureau0.60 yuanTon
Shuangyashan Mining Administration Bureau0.50 yuanTon
Pingdingshan Mining Administration Bureau1.30 yuanTon
Jiaozuo Mining Administration Bureau0.70 yuanTon
Hebi Mining Administration Bureau0.70 yuanTon
Yima Mining Administration Bureau0.60 yuanTon
Zhengzhou Mining Administration Bureau0.90 yuanTon
Datun Coal Mining and Electricity Corporation1.00 yuanTon
Xuzhou Mining Administration Bureau1.00 yuanTon
Lianzhao Mining Administration Bureau0.50 yuanTon
Zixing Mining Administration Bureau0.30 yuanTon
Baisha Mining Administration Bureau0.50 yuanTon
Guangwang Mining Administration Bureau0.50 yuanTon
Furong Mining Administration Bureau0.40 yuanTon
Panzhihua Mining Administration Bureau0.70 yuanTon
Nantong Mining Administration Bureau0.70 yuanTon
Tianfu Mining Administration Bureau0.50 yuanTon
Songzao Mining Administration Bureau0.50 yuanTon
Zhongliangshan Mining Administration Bureau0.50 yuanTon
Yongrong Mining Administration Bureau0.70 yuanTon
Liuzhi Mining Administration Bureau0.40 yuanTon
Panjiang Mining Administration Bureau0.70 yuanTon
Shuicheng Mining Administration Bureau0.60 yuanTon
Tongchuan Mining Administration Bureau0.40 yuanTon
Pubai Mining Administration Bureau0.40 yuanTon
Qitaihe Mining Administration Bureau0.60 yuanTon
Yantai Mining Administration Bureau0.40 yuanTon
Badaohao Mining Administration Bureau0.40 yuanTon
Huoxian Mining Administration Bureau1.60 yuanTon
Dongshan Coal Mine1.60 yuanTon
Yinying Coal Mine1.60 yuanTon
Hancheng Mining Administration Bureau0.60 yuanTon
Cangchun Coal Mine0.40 yuanTon
Nanzhuang Coal Mine1.60 yuanTon
Xiyu Coal Mine1.60 yuanTon
Nanpiao Mining Administration Bureau0.30 yuanTon
Tiefa Mining Administration Bureau0.30 yuanTon
Guzhuang Coal Mine1.60 yuanTon
Xiaoyu Coal Mine1.60 yuanTon
Those not under the direct control of the Central Government
Beijing City0.60 yuanTon
Hebei Province0.90 yuanTon
Shanxi Province71.60 yuanTon
Inner Mongolian Autonomous Region80.50 yuanTon
Liaoning Province0.60 yuanTon
Heilongjiang Province0.80 yuanTon
Jiangsu Province1.00 yuanTon
Jiangsu Province1.00 yuanTon
Zhejiang Province0.50 yuanTon
Anhui Province1.00 yuanTon
Jiangxi Province0.60 yuanTon
Fujian Province0.50 yuanTon
Shandong Province1.20 yuanTon
Henan Province1.00 yuanTon
Hubei Province0.50 yuanTon
Hunan Province0.50 yuanTon
Guangxi Zhuang Autonomous Region0.50 yuanTon
Guangdong Province0.50 yuanTon
Sichuan Province0.60 yuanTon
Yunnan Province100.60 yuanTon
Guizhou Province0.60 yuanTon
Shan'anxi Province110.50 yuanTon
Gansu Province0.50 yuanTon
Ningxia Hui Autonomous Region0.50 yuanTon
Qinghai Province80.50 yuanTon
Xinjiang Uighur Autonomous Region0.50 yuanTon
Jinlin Province0.60 yuanTon
IV. Other non-metal ores
1. Gems and diamonds 10 yuanCarat
2. Jade and bentonite 5.00 yuanTon
3. Graphite, quartz sand, fluorite, barite (heavy spar), vermiculite, feldspar, zealite, talc, dolomite, Gaolin clay (porcelain clay), refractory clay, mica 3.00 yuanTon
4. Marble and granite12 3.00 yuanm3
5. Limestone, 13 magnesite, natural alkali gypsum, silica fibre 2.00 yuanTon
6. Diamond for industry use 2.00 yuanCarat
7. Asbestos 
Grade 12.00 yuanTon
Grade 21.70 yuanTon
Grade 31.40 yuanTon
Grade 41.10 yuanTon
Grade 51.00 yuanTon
Grade 60.80 yuanTon
8. Iron sulphate, natural sulphur, iron phosphoric 0.50 yuanTon
9. Other non-metal ores not listed14 0.50–3.00 yuanTon or m3
V. Ferrous metal ores
1. Iron oresDressing opencut mines (major mines)
Grade 115.60 yuanTon
Grade 216.00 yuanTon
Grade 315.50 yuanTon
Grade 415.00 yuanTon
Grade 514.50 yuanTon
Grade 614.00 yuanTon
Dressing underground mines (major mines)
Grade 215.00 yuanTon
Grade 314.50 yuanTon
Grade 414.00 yuanTon
Grade 513.50 yuanTon
Grade 613.00 yuanTon
Opencut mines of which iron ores can be used to the blast furnace directly (major mines)
Grade 125.00 yuanTon
Grade 224.00 yuanTon
Grade 323.00 yuanTon
Grade 422.00 yuanTon
Underground mines of which iron ores can be used to the blast furnace directly (major mines)
Grade 223.00 yuanTon
Grade 322.00 yuanTon
Grade 421.00 yuanTon
Dressing opencut mines (not major mines)
Grade 216.00 yuanTon
Grade 415.00 yuanTon
Grade 514.50 yuanTon
Grade 614.00 yuanTon
Dressing underground mines (not major mines)
Grade 311.50 yuanTon
Grade 411.00 yuanTon
Grade 510.50 yuanTon
Grade 610.00 yuanTon
Opencut mines of which iron ores can be used to the blast furnace directly (not major mines)
Grade 223.00 yuanTon
Grade 322.00 yuanTon
Grade 421.00 yuanTon
Underground mines of which iron ores can be used to the blast furnace directly (not major mines)
Grade 321.00 yuanTon
Grade 420.00 yuanTon
2. Manganese ores 2.00 yuanTon
3. Chromium ores 3.00 yuanTon
VI. Non-ferrous metal ores
1. Copper oresGrade 11.60 yuanTon
Grade 21.50 yuanTon
Grade 31.40 yuanTon
Grade 41.30 yuanTon
Grade 51.20 yuanTon
2. Lead and zinc oresGrade 14.00 yuanTon
Grade 23.50 yuanTon
Grade 33.00 yuanTon
Grade 42.50 yuanTon
Grade 52.00 yuanTon
Grade 320.00 yuanTon
Grade 30.60 yuanTon
3. BauxiteGrade 40.50 yuanTon
4. Tungsten oresGrade 50.40 yuanTon
Grade 11.00 yuanTon
Grade 20.90 yuanTon
Grade 30.80 yuanTon
Grade 40.70 yuanTon
5. Tin oresGrade 50.60 yuanTon
Grade 11.00 yuanTon
Grade 20.90 yuanTon
Grade 30.80 yuanTon
6. Antimony oresGrade 40.70 yuanTon
Grade 50.60 yuanTon
Grade 30.60 yuanTon
7. Molybdenum ores15 Grade 40.50 yuanTon
Grade 50.40 yuanTon
Grade 212.00 yuanTon
Grade 311.00 yuanTon
8. Nickel oresGrade 410.00 yuanTon
Grade 59.00 yuanTon
9. Gold oresGrade 12.50 yuanTon
Grade 22.30 yuanTon
Rock goldGrade 32.10 yuanTon
Grade 41.90 yuanTon
Grade 51.70 yuanTon
Grade 61.50 yuanTon
Grade 71.30 yuanTon
Grade 12.00 yuan50 m3 (amount extracted)
Grade 21.80 yuan50 m3 (amount extracted)
Alluvial goldGrade 31.60 yuan50m3 (amount extracted)
Grade 41.40 yuan50m3 (amount extracted)
Grade 51.20 yuan50m3 (amount extracted)
10. Other non-ferrous metal ores 0.4–3.00Ton
VII. Salt Sea salt in the North1625.00 yuanTon
Sea salt, shaft salt and lake salt in the South12.00 yuanTon
Liquid salt3.00 yuanTon

Other Resources

Other Non-Metal/Non-Ferrous Crude Ores

For other non-metal crude ores and non-ferrous crude ores that are not covered in the tables above, the People's Government in the provinces where they are located shall determine whether Resource Tax shall be levied or deferred.

For example, Yunnan has started to levy the tax on underground hot water and mineral water, Sichuan has imposed it on mercury mines and rare earth mines, and Zhejiang has imposed it on construction stones.

Grading and Tax Amounts

Taxable mineral products are graded in accordance with the table listing Mineral Resource Grades of Some Major Products published by the Ministry of Finance.

For those products not listed in this table, the tax amount per unit shall be assessed by the People's Government at the provincial level, after referring to this table as well as the tax amounts per unit applied to nearby mining districts, as listed in Table 9.2. Variations within a range of 30% shall be permitted.

COMPUTATION METHODS

General Framework

Tax payable shall be computed based on the assessable volume of the taxable products and the prescribed applicable tax amount per unit.

Where taxpayers exploit or produce taxable products that are subject to different taxable items, they should compute the tax payable separately for the various items. If they fail to do so, or are unable to provide precisely the assessable volumes for the different items, the tax department shall apply the highest prescribed tax amount per unit.

Assessable Volume

The assessable volume of the taxable products shall be determined based on the following rules:

  • Products for sale: Where taxpayers exploit or produce taxable products for sale, the sales value shall be the assessable volume.
  • Products for self-use: Where taxpayers exploit or produce taxable products for self-use, the volume allocated for self-use shall be the assessable volume.

Where taxpayers are unable to provide precisely the sales value or used-up value of the taxable products, the assessable volume shall be computed in one of two ways.

  • Based on the value of producing the items.
  • Based on the conversion ratio specified by the relevant tax department.

Computing Tax Payable

The basic formula for computing tax payable is provided below.

Tax payable = Assessable volume of taxable product × Applicable tax amount per unit

Example

A coal mine has sold 2,000,000 tons of coal for the month. The applicable tax amount per unit is 1 yuan per ton.

Tax payable = 2,000,000 tons × 1 yuan/ton = 2,000,000 yuan

Example

The owners of a natural gas well sold 30 million m3 of gas this month. The statutory tax amount per unit is 4 yuan per 1,000 m3.

Tax payable = 30 million m3 × (4 yuan per 1,000 m3) = 120,000 yuan

TAX REDUCTIONS AND EXEMPTIONS

Taxpayers should account separately for the assessable volume of items subject to reductions or exemptions. Where they fail to do so, or are unable to precisely provide the assessable volume of the items, the tax department shall not accept any application for reduction or exemption.

Reductions or exemptions may be granted for the following items.

  • Crude oil: Where it is used to heat or repair wells in the course of exploiting crude oil, it may be exempt from tax.
  • Iron ores: Tax on such ores payable by independent metallurgical mines may be reduced by 60%.
  • Non-ferrous metal ores: Tax may be reduced by 30%.

Reductions or exemptions may also be granted under the following circumstances:

  • Losses from disasters/accidents: Where taxpayers sustain huge losses arising from accidents or natural disasters in the course of exploiting or producing taxable products, appropriate reductions or exemptions may be granted at the discretion of the People's Governments at the provincial level.

    The State Council may stipulate other items for reduction or exemption.

TIME LIMIT AND PLACE FOR TAX PAYMENT

When Liability Arises

Products for Sale

When tax liability arises it varies depending on the method of settlement involved in the sales of the products, and may be classified into three broad categories.

  • Installment payments: Where settlement is made in installments upon receipt of the products, liability arises on the date agreed upon under the contracts for collection of payment.
  • Advance payments: Where settlement is made in advance, liability arises on the date that the products are delivered.
  • Other methods: Where settlement is made through other methods, liability arises on the date that the sales sum is received, or on the date that documented evidence of the right to collect the sales sum is obtained.

Products Self-Produced for Self-Use

For products that are self-produced by the taxpayer for their own use, liability arises on the date that the products are transferred for use.

Withholding Agents

For withholding agents, liability to withhold the tax arises on the date that the first sales sum is paid or on the date that the first receipt for the sum payable is issued.

Time Limits for Payment

Assessable Period

The assessable period shall be determined by the relevant tax department after taking into account the actual circumstances. It may be 1 day, 3 days, 5 days, 10 days, 15 days, or 1 month.

Where taxpayers are unable to compute the tax payable within prescribed time limits, the tax may be assessed based on the sales volume at each instance or on the quantity of the products allocated for self-use.

Settlement Deadlines

Taxpayers that adopt 1 month as their assessable period shall report and pay tax within 10 days of the period-end.

Taxpayers with an assessable period of 1 day, 3 days, 5 days, 10 days, or 15 days shall be prepay the tax within 5 days of the period-end, and settle the tax for the month within the first 10 days of the following month.

Withholding Agents

Deadlines for withholding agents to hand over the tax withheld shall be determined with reference to the rules described earlier.

Places for Payment

Tax payable shall be paid to the relevant local tax offices in the locales where the taxable products are exploited or produced.

Exploitation Within One Area

Where taxpayers exploit or produce taxable products within the boundaries of their own provinces/autonomous regions/municipalities directly under the State Council, any changes in their tax payment locations must be approved by the local tax bureaus at the provincial level in their locations.

Cross-Area Exploitation

Where units exploit taxable products across provinces/autonomous regions/municipalities directly under the State Council, and where the subsidiary producing unit and the accounting unit are not located within the same province/autonomous region/municipality directly under the State Council, tax should be paid to the tax offices in the locales where the exploitation takes place.

Tax shall be computed based on the actual sales volume (or quantity allocated for self-use) generated from the exploitation, and on the applicable tax amount per unit. It shall be paid with a transfer of monies by the units that carry out independent accounting and that bear self-responsibility for gains/losses.

Withholding Agents

Tax withheld by the withholding agents should be paid to the relevant local tax offices in the locales where the purchase is made.

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Resource Tax." Taxation in China. . Encyclopedia.com. 18 Sep. 2018 <http://www.encyclopedia.com>.

"Resource Tax." Taxation in China. . Encyclopedia.com. (September 18, 2018). http://www.encyclopedia.com/books/international-magazines/resource-tax

"Resource Tax." Taxation in China. . Retrieved September 18, 2018 from Encyclopedia.com: http://www.encyclopedia.com/books/international-magazines/resource-tax

Learn more about citation styles

Citation styles

Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).

Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.

Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:

Modern Language Association

http://www.mla.org/style

The Chicago Manual of Style

http://www.chicagomanualofstyle.org/tools_citationguide.html

American Psychological Association

http://apastyle.apa.org/

Notes:
  • Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
  • In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.