Jan. 23 – China’s State Administration of Taxation (SAT) recently clarified the tax treatment towards transfers of natural resource use rights.
According to the “Circular on Business Tax (BT) Policies on Natural Resource Use Right Transfers (caishui [2012] No.6)” issued on January 6, 2012, transfers of natural resource use rights – namely transfers of the rights to explore, exploit and employ natural resources – will be regarded as one type of intangible asset transfers. Continue reading
Resource companies to face heavier tax burdens
Oct. 13 – After being delayed twice, China’s resource tax reform is finally going national. Starting on November 1, crude oil and natural gas will be taxed based on sales rather than the amount of production, and coking coal as well as rare earths will be subject to higher tax rates.
Based on the “Interim Provisions on Resource Tax of the People’s Republic of China (State Council Decree No.139)” released back in 1993, China’s State Council issued Decree No.605 on September 30 and announced the new amendments to the regulations. While the Chinese government says the reform is mainly for the purpose of resource conservation and environmental damage reduction, Western analysts believe the move will also cause a larger portion of resource companies’ profits to flow to local governments’ pocket. Continue reading
Op-Ed Commentary: Chris Devonshire-Ellis
Oct. 12 – One of the hidden treasures of Xinjiang is Shihezi. Actually the region’s second largest city after Urumqi, this has long been a farming community and is often regarded with typical Chinese aplomb as “A Shining Pearl in the Gobi Desert.” Continue reading
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