General Regulations of P. R. China XXIV

Article 1 These Detailed Rules were formulated according to Regulations in Article 15 of "Provisional Regulations of the People's Republic of China on Resource Tax" (hereinafter referred to as 'Regulations').

Article 2 The scope of tax on some of the 'Resource Taxable Items' attached to the Table of Resource Taxable Items and Range of Tax Rates, are restricted to the following:

A. 'crude oil' refers to natural crude oil recovered, but does not include artificial oil;

B. 'natural gas' refers to natural gas specially extracted, or exploited together with crude oil, but, provisionally, does not include natural gas produced by coal mines;

C. 'coal' refers to raw coal, but does not include coal-washing, coal-dressing and other coal products;

D. 'other non-metal ores' refers to non-metal ores other than the mineral products and the mined salt mentioned above;

E. 'solid salt' refers to crude sea salt, crude lake salt and mined salt; liquid salt refers to brine.

Article 3 'Units' in Article 1 of the Regulations refers to State-owned enterprises, collectively-owned enterprises , privately-owned enterprises, joint-stock enterprises, other enterprises, administrative units, institutions, military units , social organizations and other units.

'Individuals' in Article 1 of these Regulations refers to individual operators and other individuals.

Article 4 The specifically applicable tax amounts for Resource Taxable goods, shall be levied in accordance with the attached Table of Resource Taxable Items and Range of Tax Rates.

For other non-metal ores and other non-ferrous metals, the People's Governments of the provinces, autonomous regions and municipalities directly under the Central Government shall determine whether to levy or defer the collection of Resource Tax and shall report their decision to the State Administration of Taxation for their records.

The grades of mineral products shall be determined in accordance with the Table of Some Major Mineral Resource Grades.

For taxable products with specified grades, the tax rate applicable for those taxpayers who are not listed in the Table of Some Major Mineral Resources Grades, shall be determined, within a 30% floating range, by the People's Governments of the provinces, autonomous regions and municipalities directly under the Central Government in accordance with the resource situation of the taxpayer, and the standard tax rates of nearby mines listed in the Supplementary Table of Resource Taxable Items and Tax Amounts and following the Table of Some Major Mineral Resources Grades; they shall then submit their decision to the State Administration of Taxation for their records.

Article 5 Where a taxpayer cannot accurately provide the sales volume or the transferred volume of taxable products, then the assessable amount shall be the output amount or an amount determined by the responsible taxation authority.

Where the amounts of thickened oil, high congealing oil and thin oil in crude oil are not clearly separated or cannot be easily separated, they shall all be treated as an amount of crude oil for tax purposes.@@page@@

Article 6 'The time at which tax liability arises' in Article 9 of the Regulations is specified as follows:

A. for taxpayers selling taxable products, the time shall be :

a. where the taxpayer receives payment by installments, the time shall be the day of payment agreed to in the sales contract ;

b. where products are paid for in advance, the time shall be the day on which the products are delivered;

c. where products are sold by other methods, the time shall be the day on which the sales sum is received or the day on which documented evidence of the right to collect the sales sum is received ;

B. where self-produced goods are for own use, the time shall be the day on which the taxable products are removed;

C. for tax rate withheld by withholding agents, the time shall be the day on which the sales sum is received.

Article 7 'Withholding Agents' in Article 11 of the Regulations refers to independent mines, united enterprises and other units who purchase untaxed mineral products.

Article 8 'Units purchasing untaxed mineral products shall be Resource Tax withholding agents' in Article 11 of the Regulations is meant to strengthen the collection and administration of Resource Tax. Because the tax sources are scarce and scattered , the exploitation irregular and tax evasion simple, the tax authorities consider it difficult to control the collection and administration of Resource Tax, so require the withholding agents to withhold the tax when purchasing untaxed mineral products.

Article 9 Resource Tax withheld by the withholding agents shall be paid to the local responsible taxation authorities.

Article 10 According to Article 12 of these Regulations, Resource Tax payable by a taxpayer shall be paid to the local responsible taxation authorities where the taxable products are exploited or produced. In the practical implementation of this Article, where a unit exploits taxable resources and the subsidiary producing units are located in a different province, Resource Tax payable shall, in all cases, be paid to the taxation authorities in the area where the resources were exploited, in accordance with the practical sales amounts.(or the amount for self-use) and the unit tax rate applicable.

Article 11 The specific unit tax rates applicable to a taxpayer shall be regularly adjusted by the Ministry of Finance according to changes in resource and exploitation conditions.

Article 12 These Detailed Rules shall be interpreted by the Ministry of Finance or by the State Administration of Taxation.

Article 13 These Detailed Rules shall be implemented as of the day of promulgation. "Detailed Rules for the Implementation of Provisional Regulations on Resource Tax of the People's Republic of China (Draft)" issued by the Ministry of Finance on September 28, 1984, will cease to be effective.

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