State Council, PRC Tentative Regulations on Resource Tax (Revised)

Promulgated: September 30 2011
Effective: November 1 2011

Main contents: According to the revision, the amount of resource tax payable shall be calculated by either the ad valorem method or the specific tax method in which case the sales amount of the taxable product (i.e. minerals exploited or salt produced) shall be multiplied by the particular proportional tax rate applicable to the taxpayer or the quantity of the taxable product sold shall be multiplied by the particular specific tax rate applicable to the taxpayer respectively (Article 4). Where a taxpayer exploits or produces taxable products that fall into different tax categories, the sales amount or quantity sold of each taxable product shall be calculated separately. If they are not calculated separately or if the accurate sales amounts or quantities sold of the different taxable products cannot be provided, the higher tax rate shall apply (Article 5). Where a taxpayer exploits or produces a taxable product that it itself uses for the continuous production of the taxable product, it shall not pay resource tax thereon. However, if it uses the same for other purposes, such shall be deemed sale and it shall pay resource tax thereon (Article 6).