General Regulations of P. R. China XXIII

Article 1 All units and individuals, within the borders of the People's Republic of China, engaged in the exploitation of mineral products as prescribed in these Regulations or in the production of salt (hereinafter referred to simply as 'exploiting or producing taxable products') are taxpayers of Resource Tax (hereinafter referred to simply as 'taxpayers') and shall pay tax in accordance with these Regulations.

Article 2 The taxable items and flat rates of Resource Tax shall be determined in accordance with the Table of Resource Taxable Items and Range of Tax Rates attached to these regulations as well as the relevant stipulations of the Ministry of Finance.

Any adjustments to the taxable items and the range of rates shall be determined by State Council.

Article 3 The amount of tax actually applicable to a taxpayer, will be determined within the scope of the regulations on the amount of tax, by the Ministry of Finance and related departments of the State Council, according to the resource conditions of the extracted or produced commodities of the taxpayer.

Article 4 Taxpayers who exploit or produce taxable products in different tax categories, should calculate the different categories of taxable products separately. If they do not calculate them separately or cannot provide accurate assessable amounts for the different categories of products, then they shall apply the highest tax rate to the assessable volume.

Article 5 The amount of Resource Tax payable shall be calculated according to the assessable volume of taxable products and prescribed unit tax rate. The formula for calculating the tax payable is as follows:

tax payable = assessable amount X unit tax rate.@@page@@

Article 6 The assessable amount for calculation of Resource Tax is as follows:

A. where taxpayers exploit or produce taxable products for sale, the sales volume shall be the assessable amount;

B. where taxpayers exploit or produce taxable products for their own use, the own use volume shall be the assessable amount.
Article 7 Under any one of the following conditions, Resource Tax shall be exempt or reduced:

A. crude oil used for heating or repairing wells in the course of exploiting crude oil, shall be exempt from tax;

B. where a taxpayer, in the course of exploiting or producing taxable products, sustains huge losses due to such as accidents or natural disasters, tax reduction or exemption shall be determined at the discretion of the People's Government of the province, autonomous region or municipality directly under the Central Government;

C. other tax reductions or exemptions as stipulated by State Council.

Article 8 The assessable amount of items subject to tax reduction or exemption shall be calculated independently; where they are not, or cannot accurately be calculated separately, no tax reduction or exemption shall be granted.

Article 9 Where taxpayers sell taxable products, the time at which tax liability arises shall be the day on which the sales sum is received or documented evidence of the right to collect the sales sum is received. Where self -produced taxable products are for own use, the time at which tax liability arises shall be the day on which the products are removed for use.

Article 10 Resource Tax shall be collected by the Taxation Authorities.

Article 11 Units which receive non-taxable mineral products shall be the tax withholding agents for Resource Tax.

Article 12 Resource Tax payable by a taxpayer shall be paid to the taxation authorities where the taxable products were exploited or produced. Where a taxpayer exploits or produces taxable products within the boundaries of their own province, autonomous region or municipality directly under the Central Government, any adjustment to their tax payment location shall be determined by the taxation authorities in that province, autonomous region or municipality directly under the Central Government.

Article 13 The time limits for payment of tax by taxpayers shall be one day, three days, five days, ten days, fifteen days or one month, to be determined by the taxation authorities according to actual circumstances; tax that cannot be assessed in regular periods may be assessed on a transaction-by-transaction basis. Taxpayers that adopt one month as the assessment period shall report and pay tax within ten days following the end of the period. Taxpayers that adopt one, three, five, ten or fifteen days as the assessment period shall prepay the tax within five days following the end of the period and a monthly return shall be filed with any balance of tax due settled within ten days from the first day of the following month.

Tax payment time limits for tax withholding agents shall be determined with reference to the stipulations of the above two paragraphs.

Article 14 Resource Tax levy administration shall be implemented according to "Law of the People's Republic of China on the Administration of Tax Collection" and relevant regulations in these Articles.

Article 15 'Interpretation of these Regulations shall be the responsibility of the Ministry of Finance, as shall formulation of the Detailed Rules for their implementation.

Article 16 These Regulations take effect as of January 1, 1994. "Regulations on Resource Tax of the People's Republic of China (Draft)" and " Regulations on Salt Tax of the People's Republic of China (Draft)" promulgated by State Council on September 18, 1984, will cease to be effective on the same date.

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