Table of Contents
Chapter I: General Provisions
Article 1 This Law is enacted for the purposes of regulating the collection and administration of resource tax, promoting the conservation and intensive utilization of resources, and strengthening environmental protection.
Article 2 Entities and individuals that exploit taxable products listed in the Table of Tax Items and Tax Rates of Resource Tax or produce salt within the territory of the People’s Republic of China and other sea areas under the jurisdiction of the People’s Republic of China shall be taxpayers of resource tax and shall pay resource tax in accordance with the provisions of this Law.
Article 3 The specific tax items of resource tax shall be determined in accordance with the Table of Tax Items and Tax Rates of Resource Tax attached to this Law.
Chapter II: Tax Rates and Calculation
Article 4 Resource tax shall be calculated and levied based on the ad valorem rate or the specific fixed amount in accordance with the Table of Tax Items and Tax Rates of Resource Tax. Where the ad valorem rate method is applied, the amount of tax payable shall be calculated based on the sales amount of taxable products multiplied by the specific applicable tax rate. Where the specific fixed amount method is applied, the amount of tax payable shall be calculated based on the sales quantity of taxable products multiplied by the specific applicable tax amount. Where a taxable product is a mineral product, the calculation shall include the raw ore and ore dressing products.
Article 5 Where a taxpayer exploits or produces taxable products for his own use, or where taxable products are used for investment, distribution to shareholders or investors, gifts, debt repayment, exchange of non-monetary assets, employee welfare, profit distribution, or other purposes, resource tax shall be paid based on the sales amount for similar taxable products; where there is no sales amount for similar taxable products, the tax shall be paid based on the composed assessable price.
Article 6 The sales amount of taxable products shall be the total price and extra charges obtained by the taxpayer from the sale of taxable products, excluding the amount of VAT collected. The sales quantity of taxable products shall include the quantity actually sold by the taxpayer and the quantity used for the taxpayer’s own purposes.
Chapter III: Tax Reductions and Exemptions
Article 7 Resource tax shall be exempted for any of the following circumstances: (1) where crude oil and natural gas used for heating during the exploitation of crude oil within the scope of an oil field, as well as crude oil and natural gas used in the process of exploitation and transportation, are consumed; (2) where coal mine gas extracted by a coal mining enterprise for the safety of coal mine production and coal gasification; or (3) other circumstances prescribed by laws and administrative regulations for resource tax exemption.
Article 8 Resource tax may be reduced or exempted for any of the following circumstances: (1) where crude oil, natural gas, and other resources are exploited from low-abundance oil and gas fields, low-permeability oil and gas fields, deepwater oil and gas fields, or high pour-point oil reservoirs; (2) where mineral products are exploited from depleted mines; (3) where mineral products are extracted from associated minerals and tailings during the comprehensive utilization of mineral resources; or (4) other circumstances prescribed by laws, administrative regulations, or the State Council.
Article 9 Where a taxpayer exploits or produces taxable products and needs to pay resource tax in accordance with the provisions of Article 2 of this Law, and simultaneously meets the conditions for resource tax reduction and exemption, the taxpayer may choose the most preferential policy for application, but the reductions and exemptions shall not be applied cumulatively.
Chapter IV: Collection Administration
Article 10 Resource tax shall be levied and administered by the tax authorities in accordance with this Law and the Law of the People’s Republic of China on the Administration of Tax Collection. The tax authorities and the departments of natural resources and other relevant departments shall establish a working coordination mechanism and strengthen the administration of resource tax collection.
Article 11 The tax liability for resource tax shall arise on the date when the taxpayer sells taxable products and receives the sales payment or obtains the voucher for claiming the sales payment, or on the date when the taxpayer uses taxable products for his own use and transfers the taxable products for use.
Article 12 Taxpayers shall declare and pay resource tax on a monthly or quarterly basis. For taxpayers declaring and paying tax on a quarterly basis, they shall, within 15 days after the end of the quarter, declare and pay the tax with the tax authorities. For taxpayers declaring and paying tax on a monthly basis, they shall, within 15 days after the end of the month, declare and pay the tax with the tax authorities. Where the tax payment period cannot be fixed, the tax may be paid on an instance-by-instance basis.
Article 13 The place for payment of resource tax shall be the place where the taxable products are exploited or produced. Where a taxpayer exploits or produces taxable products within the territory of this province, autonomous region, or municipality directly under the Central Government and needs to adjust the place for tax payment, the decision shall be made by the tax authorities of the province, autonomous region, or municipality directly under the Central Government.
Chapter V: Supplementary Provisions
Article 14 The State Council may, based on the needs of national economic and social development and in accordance with the principles of adjusting the exploitation of resources and protecting the environment, decide on levying water resources tax on an experimental basis in some regions. After the experimental practices mature, water resources tax shall be levied nationwide in a timely manner in accordance with law. Where forest resources, grassland resources, and other natural resources are taxable, the specific measures shall be prescribed by the State Council and submitted to the Standing Committee of the National People’s Congress for filing.
Article 15 The State Council may decide on adjusting the scope of tax items and the range of tax rates for resource tax in accordance with the needs of national economic and social development and with the approval of the Standing Committee of the National People’s Congress.
Article 16 This Law shall come into force on September 1, 2020. The Provisional Regulations of the People’s Republic of China on Resource Tax promulgated by the State Council on December 25, 1993, shall be repealed simultaneously.
Translation note: This is an unofficial English translation for reference purposes. The original Chinese text shall prevail in all legal matters.
