Resource Tax Law of the People's Republic of China (“Resource Tax Law”) has been passed on 26th August of 2019 and will be implemented from 1st September of 2020. The “Provisional Regulations on Resource Tax” applied since 25th December of 1993 will be abolished at the same time. 

The Resource Tax Law brings the following three major changes:

 1) it simplifies the collection period. The new law stipulates that tax payer can choose to declare and hand in tax per month or per quarter. The declaring period is changed from 10 days to 15 days to be in same step with other taxes. It will remarkably reduce the declaring frequency of tax payers and ease the taxation burden substantially. 

2) It standardizes tax items and rates. It would help simplify tax declaration. The new Resource Tax Law standardizes the tax items in positive sequence list and defines the tax rates by category, This provides a institutional foundation for simplifying tax declaration.

3) It strengthens the coordination among the departments. That would be in favour of tax payers’ right and interest protection. The new Resource Tax Law clearly stipulats that taxation organs and natural resources and other relevant units should establish the supporting mechanism, as good coordination will reduce disputes of tax collection and pay and will protect tax payers’ legal right better.

Based on the actual implementing situation of the Provisional Regulations on Resource Tax, to clarify the legal nature of the taxation and providing the current taxation frame and tax rates will be remained the same in general, the legislation this time is an upgrade of the Provisional Regulations on Resource Tax into formal law. Setting up the Resource Tax Law is meaningful to improve intensive exploitation and use of resources, to push the development of green resources and to form the guiding role of the taxation.