Q:
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What is the tax base of resource tax?
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A:
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The tax base of resource tax is the sales revenue of taxable products. The sales revenue shall be determined based on the full price charged by a taxpayer from the purchaser for selling taxable products, excluding VAT.
The relevant shipping and miscellaneous expenses included in the sales revenue shall be allowed to be deducted from the sales revenue, provided that the VAT invoices or other legal and valid vouchers are obtained. “Relevant shipping and miscellaneous expenses” refer to the costs of transport of taxable products from pitheads or washing (processing) locations to stations, docks or locations designated by the buyers, construction funds as well as the loading and unloading costs, storage costs and harbor charges arising from transport and sale.
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Q:
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Should a taxpayer pay resource tax if he uses his own taxable product?
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A:
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A taxpayer shall pay resource tax if he uses his own taxable product for the purpose of non-monetary asset exchange, donations, debt repayment, sponsorship, fundraising, investment, advertisement, sample, employee benefits, profit distribution, or continuous manufacturing of non-taxable products, etc.
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Q:
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Under what circumstances that resource tax is exempt based on current policy?
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A:
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Resource tax is exempt in the following situations:
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Crude oil and natural gas used to heat when extracting and shipping crude oil within the oil field;
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2.
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Coal-derived (bedded) gas that coal mining enterprises need to extract due to safe production.
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Q:
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Under what circumstances that resource tax is reduced based on current policy?
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A:
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Resource tax is reduced in the following situations in accordance with the Resource Tax Law:
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20% resource tax is reduced for crude oil and natural gas extracted from low-abundance oil and gas fields;
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2.
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30% resource tax is reduced for high-sulphur natural gas, tertiary oil recovery, and crude oil and natural gas extracted from deep-water oil and gas fields;
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3.
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40% resource tax is reduced for heavy oil and high pour point oil;
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4.
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30% resource tax is reduced for mineral products mined from depleted mines.
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The Notice of the Ministry of Finance and the State Administration of Taxation on Reducing Resource Tax on Shale Gas stipulates that 30% resource tax is reduced for shale gas from 1 April 2018 to 31 March 2021.
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Q:
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How could taxpayers enjoy the preferential policy of resource tax?
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A:
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Taxpayers enjoy preferential policy of resource tax in the manner of ‘self-judging, declaring for enjoying, keeping relevant materials for reference’, unless otherwise specified.
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Q:
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How should taxpayers determine the location of their tax obligation?
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A:
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Taxpayers shall declare and pay resource tax to the tax authority where the taxable product is mined or produced.
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Q:
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What is the deadline of declaration for resource tax?
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A:
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Taxpayers shall declare resource tax monthly or quarterly; where the taxpayer could not calculate and pay resource tax as per fixed terms, they may declare and pay tax on a transaction-by-transaction basis.
Taxpayers who declare and pay on a monthly or quarterly basis shall, within 15 days from the end of the month or quarter, file a tax declaration and pay the tax with the tax authority; taxpayers who declare and pay tax on a transaction-by-transaction basis shall, within 15 days from the date that tax obligation incurs, file a tax declaration and pay the tax with the tax authority.
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FAQ
