The Resource Tax Law of the People's Republic of China (中华人民共和国资源税法) was adopted on August 26, 2019, at the 12th Session of the Standing Committee of the 13th National People's Congress (NPC), and came into effect on September 1, 2020. It replaced the provisional Regulations on Resource Tax that had been in effect since 1993.

Key Provisions of the Law:

1. Taxable Resources

   • Covers minerals (e.g., crude oil, natural gas, coal, metals, non-metals), salt, water, and other natural resources.
   • Some resources (e.g., certain rare earths, tungsten, molybdenum) may be subject to ad valorem (value-based) or specific (volume-based) taxation.

2. Tax Rates

   • Rates vary by resource type and are set by the State Council or local governments within a prescribed range.
   • For example:
     • Crude oil: 6% (ad valorem)
     • Natural gas: 6% (ad valorem)
     • Coal: 2–10% (ad valorem) or fixed rates per ton.

3. Tax Calculation

   • Ad valorem basis: Tax = Sales amount × Tax rate
   • Specific basis: Tax = Sales volume × Fixed amount per unit

4. Exemptions & Reductions

   • Exemptions may apply for:
     • Oil/natural gas extracted for heating or residential use.
     • Water used in agriculture.
     • Resources severely damaged during extraction (case-by-case approval).

5. Administration

   • Collected by tax authorities where the resources are extracted.
   • Taxpayers must file returns and pay taxes within prescribed deadlines.

Purpose of the Law:

• Promote efficient resource utilization and environmental protection.
• Standardize tax collection and replace local fees with a unified tax system.
• Support sustainable development by adjusting tax rates based on market conditions.

Comparison with Previous Regulations:

• The 2019 law formalized resource tax into national legislation (previously governed by State Council regulations).
• Added water resources (e.g., groundwater, surface water) to taxable items in some regions.
• Enhanced flexibility for local governments to adjust rates within limits.

For the latest updates or region-specific rates, consult China’s State Taxation Administration (STA) or local tax bureaus.

Would you like details on a specific resource or tax calculation example?