Announcement on the Implementation Criteria for Issues Related to Resource Tax
Announcement on the Implementation Criteria for Issues Related to Resource Tax
Announcement on the Implementation Criteria for Issues Related to Resource Tax
Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.34
June 28, 2020
With a view to implementing the Law of the People's Republic of China on Resource Tax, the implementation criteria for issues related to resource tax are hereby announced as follows:
I. The sales amount of taxable products for resource tax (hereinafter referred to as "taxable products") shall be determined based on the total price (excluding VAT payment) that a purchaser of taxable products is charged by the relevant taxpayer.
It is permitted to deduct the pertinent freight and miscellaneous charges included in the sales amount as long as relevant VAT invoices or other legal and valid credentials are obtained. Pertinent freight and miscellaneous charges refer to the costs of transporting taxable products from the relevant pithead or washing & dressing (processing) place to any station, terminal or location designated by a purchaser plus the construction funds as well as the handling, warehousing, and miscellaneous port fees incurred due to the transport and sales thereof.
II. A taxpayer shall pay resource tax on taxable products for self-use where it uses taxable products for non-monetary asset exchange, donation, debt service, sponsorship, fundraising, investment, advertising, samples, employee benefit, profit distribution or on-going production of non-taxable products, among others.
III.
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Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.34
June 28, 2020
With a view to implementing the Law of the People's Republic of China on Resource Tax, the implementation criteria for issues related to resource tax are hereby announced as follows:
I. The sales amount of taxable products for resource tax (hereinafter referred to as "taxable products") shall be determined based on the total price (excluding VAT payment) that a purchaser of taxable products is charged by the relevant taxpayer.
It is permitted to deduct the pertinent freight and miscellaneous charges included in the sales amount as long as relevant VAT invoices or other legal and valid credentials are obtained. Pertinent freight and miscellaneous charges refer to the costs of transporting taxable products from the relevant pithead or washing & dressing (processing) place to any station, terminal or location designated by a purchaser plus the construction funds as well as the handling, warehousing, and miscellaneous port fees incurred due to the transport and sales thereof.
II. A taxpayer shall pay resource tax on taxable products for self-use where it uses taxable products for non-monetary asset exchange, donation, debt service, sponsorship, fundraising, investment, advertising, samples, employee benefit, profit distribution or on-going production of non-taxable products, among others.
III.
......