Guo Shui Fa [1994] No. 015

    I. Assessable source tax volume for products self-produced for own use： in case it is not possible to provide the accurate volume transferred for the taxable products self-produced for own use by the resource tax payers and the taxable volume is calculated with conversion ratio， the following provisions shall be applied specifically：
    （I）    For coal， when it is not possible to obtain the actual amount transferred before the continuous processing， the actual sales volume and amount for own use of the processed product can be converted to the volume of raw coal as the assessable volume on the basis of the overall yield of processed product.
    （II）   For raw mines of metal and non-metal mineral products， as the volume of raw mines transferred by taxpayers cannot be accurately obtained， the volume converted from concentrates at concentration ratio can be taken as the assessable volume.

    II. Scope of products self-produced for own use
    The products self-produced for own use as referred to in the Provisional Regulation for Resource Tax and its Detailed Rules for Implementation include those used for production and those not used for production.

    III. The applicable tax amount for resource tax withholding agent is specified as follows：
    （I）    For independent mines and combined enterprise purchasing untaxed mineral products， resource tax shall be withheld for the purchased amount at the assessable standard for the taxable product of the units.
    （II）   For the untaxed mineral products purchased by other purchasing units， resource tax shall be withheld for the purchased amount at the assessable standard for taxable product as verified by the charging taxation authority.

    IV. Specific taxation provisions for linking the new and old taxation systems：
    （I）    For salt in store before Jan. 1， 1994 and used after Jan. 1994， salt resource tax shall be paid by the using unit at the time of use for the amount used according to the new regulation for resource tax and the tax amount.
    （II）   For salt stored after Jan. 1， 1994， tax shall be paid when the salt leaves the field （plant） according to the provisions in the new resource tax regulation.
    （III）   For salt leaving the field （plant） before Jan. 1， 1994， for which no salt tax has been paid and which is sold after Jan. 1， 1994， the transport and marketing units shall pay the resource tax according to the provisions in the new resource tax regulation in the transport and marketing process.
    （IV）   For marketing contracts signed before Jan. 1， 1994 with goods supplied after Jan. 1， 1994， the resource tax shall be paid according to the provisions in the new resource tax regulation and the tax amount.

    V. Ferrous metal ores and non-ferrous metal ores
    （I）    Ferrous metal ores and of non-ferrous metal ores shall be the metal ores exploited by taxpayers for own use or marketing， by direct smelting in furnaces or by first dressing for concentrates as main product， making artificial mine and finally smelting in furnaces.
    （II）   Metal mineral ore products for own use shall be the ores for dressing for concentrates， direct smelting in furnaces or for making sinter or pellets.
    （III）   Ores of iron ore for direct feeding shall be powder ore， ore for blast furnace， ore block for blast furnace， ore block for open-hearth， etc.
    （IV）   Independent mines shall only be units only engaged in mining or mining and dressing， with independent accounting and bearing gains and losses by themselves， and producing ores and concentrates mainly for selling.
    （V）   Complex enterprises shall be enterprises engaged in continuous production of mining， ore dressing and smelting （or processing） or in continuous production of mining and smelting （or processing）， and their mining units shall normally be their accounting units of level II or below.

    VI. Crude oil
    （I）    Heavy oil， shall be crude oil with oil viscosity greater than 100 mPa/s or specific weight greater than 0.92 under the temperature of oil layer. High condensed oil， shall be crude oil with a freezing point over 40℃ and wax content over 30% for which normal production is not possible with ordinary ways of exploitation.
    （II）   For condensed oil， resource tax shall be levied as for crude oil.
    （III）   Other land petroleum extracting enterprises shall be land petroleum extracting units not listed in the "Detailed tax amount of resource tax items" and exploration units with output of oil during petroleum exploration process and selling such oil or using it by its own.
    （IV）  Offshore petroleum extracting enterprises shall be enterprises engaged in offshore petroleum resources extracting by law within the internal sea， territorial sea and continental shelf  of the People`s Republic of China and other sea areas under the jurisdiction of the People`s Republic of China.

    VII. Salt
    （I）    North sea salt shall be the sea salt produced in Liaoning， Hebei， Tianjin， Shandong and Jiangsu. South sea salt shall be the sea salt produced in Zhejiang， Fujian， Guangdong， Hainan and Guangxi. Liquid salt， also referred to as brine， is a solution with sodium chloride content at a given concentration and as a raw material for the production of soda and other products.
    （II）   The resource tax of salt shall all be paid by producers when delivered out of the field （plant）。
    （III）   For solid salt processed by taxpayers from own-produced liquid salt， tax shall be levied at the tax amount of solid salt with the quantity of solid salt as the assessable volume. When taxpayers process solid salt from purchased liquid salt， the tax already paid for the liquid salt consumed in processing solid salt can be deducted.

    VIII. All stipulations on taxation made by the former Taxation Administration of the Ministry of Finance， the Bureau of State Taxation and the State Administration of Taxation on the basis of the regulations on resource tax and salt tax and their detailed rules shall be nullified as of Jan. 1， 1994.