Page 36 - Doing Business in China
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TAXATION
a) Taxable products and tax rates
Product Tax Rate
Crude oil 6%
Natural gas 6%
Coal 2-10%
Other non-metallic mineral ores 1-12%
Ferrous metallic mineral ores 1-9%
Non-ferrous metallic mineral ores 2-10%
Solid salt 2-5%
b) Assessment and administration
Payment shall be made to the local tax authorities of the region where the taxable product is mined or
produced� The tax filing shall be conducted on a monthly or quarterly basis within 15 days after the end of a
month or a quarter�
ENVIRONMENTAL PROTECTION TAX
The Environmental Protection Tax Law of PRC was implemented on 1 January 2018� It marks the beginning of a
string of new policies aimed at getting China’s pollution under control� The Environmental Protection Tax Law
applies to the following four categories: water pollution, air pollution, noise pollution and solid wastes�
The table below summarises some of the major tax rates for each category�
Categories Tax unit Tax amount (RMB)
Air pollution Per pollution equivalent 1�2 to 12
Water pollution Per pollution equivalent 1�4 to 14
Solid wastes Per ton 5, 15, 25, 1000
Noise pollution Industrial noise 350, 700, 1400, 2800, 5600, or 11200 per month
Payment is made to the local tax authorities where the pollution is produced� The tax filing must be conducted on
a monthly or quarterly basis within 15 days after the end of a month or a quarter�
TOBACCO TAX
On 1 July 2018, the Tobacco Tax Law of PRC was implemented� The taxpayers liable for the tobacco tax are those who
purchase flue-cured tobacco� The tax amount is calculated based on the amount of purchase at a tax rate of 20%�
The tobacco tax is collected by the local tax authorities where the tobacco is purchased� The tax filing must be
conducted on a monthly basis within 15 days after the end of a month�
URBAN LAND USE TAX
Urban land use tax is levied on enterprises or individuals using state-owned land in cities, county sites,
administrative towns or industrial and mining areas� It is calculated on an annual basis by multiplying the actual
land area used by the quota tax rate, which varies depending on the land’s location� The tax rate varies from RMB
0�6 to RMB 30 per square meter�
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