China confirmed that the new system of taxation of Natural Resources what worked on an experimental basis, has been extended.
As part of the reforms, China becomes the basis for the taxation of natural resources from the system based on the amount to ad-valorem system (based on value).
The Chinese government is primarily distributed worldwide new resource tax in November 2011, since the tax resources such as oil and natural gas, coal and rare earths have changed.
Currently, seven types of resources are subject to the tax on resources: crude oil, natural gas, coal and other crude non-metallic ores, crude ores of nonferrous metals, ore and crude salt. According to the August 29 broadcast in English first bet on June 27, 2016, from this moment the government began to deploy resources tax reform “comprehensive way”.
Inside confirmed that “efforts will be made to make the collection of taxes on water as on an ad valorem basis.”
The Government believes that the resources tax reform in full will improve the pricing mechanism of resources products, taking into account differences between countries producing regions of China; promote coordination and enhanced regional development; and include environmental conservation and exploitation of resources.
It is assumed that tax rates should take into account the resources involved in the production of each mineral so that the overall tax burden on the company’s production should not be increased.
According to the State Administration of taxes and fees, income tax resources grew by an average of 27 percent per year since the tax was introduced to achieve up to RMB103.5bn (USD15.5bn) in 2015, representing 1.8 percent of the local tax revenues.