Ministry of Finance and State Administration of Taxation, Circular on the Policy for Business Tax on Transfers of Natural Resource Use Rights

财政部、国家税务总局关于转让自然资源使用权营业税政策的通知

February 07, 2012 | BY

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Business tax is levied on transfer of natural resource use rights.

Clp Reference: 3230/12.01.06 Promulgated: 2011-01-06 Effective: 2012-02-01

Applicability: The term “transfer of natural resource use rights” means the act whereby the rights holder transfers the rights to explore for, extract and use natural resources.

The term “natural resource use rights” means sea area use rights, exploration rights, mining rights, water drawing rights and other natural resource use rights (excluding land use rights).

The term “transfer of natural resource use rights in China” means that the natural resource use rights being transferred involve natural resources located in China (Article 2).

Main contents: The Circular adds a sub-tax item, “transfer of natural resource use rights” to the tax item, “transfer of intangible assets” in the Notes to Business Tax Items (Draft for Trial Implementation).

The granting, transfer and recovery of natural resource use rights by people's governments and competent natural resource administrative departments at the county level and above shall not be subject to business tax (Article 1).

clp reference:3230/12.01.06promulgated:2011-01-06effective:2012-02-01

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