About publishing "coal resource tax collection and management methods (Trial)" notice

State Administration of Taxation
About publishing "coal resource tax collection and management methods (Trial)" notice

Ref: State Administration of Taxation Announcement No. 51, 2015
Issued: State Administration of Taxation
Date issued: 2015-07-01

In order to further standardize the tax law enforcement, tax optimization services, convenient for taxpayers tax-related matters, to promote standardization of the management of coal resource tax, the State Administration of Taxation formulated the "coal resource tax collection and management methods (Trial)." It is hereby promulgated for implementation from 1 August 2015.
Special announcement.

State Administration of Taxation
July 1, 2015
Coal resource tax collection and management methods (Trial)
The first to standardize the management of coal resources tax levied ad valorem, according to "People's Republic of China on Tax Collection and Management Law" and its implementation details, "People's Republic of China resource tax regulations" and its Implementing Rules and the "Ministry of Finance State Administration of Taxation on implementation of coal resources tax reform notice "(Cai Shui [2014] No. 72), as well as relevant laws and regulations, development of this approach.
Article taxpayers selling taxable coal mining and according to the fixed rate method for calculating the ad valorem resource tax paid. Taxable including coal and coal to not tax coal (ie: from coal mining) processing of washed coal.
Coal refers to coal mined coal through a simple wool Sorting Stone (gangue diameter 50mm or more) later, after sorting and screening coal.
Washed coal means after screening, crushing, washing, cleaning and other physical and chemical processes of wind, go to Refuse ash after coal products, including coal, coal, coal, etc., not including gangue.
Article coal resource tax payable according to the raw coal or coal washing taxable sales amount multiplied by the applicable tax rates.
Coal sales tax from the sale of the taxpayer all price and additional fees charged to the purchaser of coal, excluding VAT output tax charge and shipping costs from the pit to the station, pier or the purchaser designated location.
Washed coal washed coal sales tax sales by multiplying the conversion rate calculation. Washed coal sales refers to sales of the taxpayer washed coal charged to the purchaser of all the consideration and other costs, including washing byproduct sales, excluding value-added tax from output tax collected and washed coal preparation plant to the station transportation costs pier or the purchaser designated location.
Coal sales in the calculation of the tax, taxpayers deduct transportation costs of raw coal and washed coal sales included the construction fund and the accompanying distribution generated by handling, warehousing, Hong Kong and other miscellaneous expenses Article IV, according to "Treasury supplementary notice of the State Administration of Taxation concerning coal resources tax policy, "(Cai Shui [2015] No. 70) of the regulations. Deductions credentials including relevant invoices or by the competent tax authorities of other credentials.
Transport costs were significantly higher than the local market price of taxable coal products led to low prices and unwarranted, the tax authorities have the right to reasonably adjust the tax price.
Article washed coal conversion rate provinces, autonomous regions, municipalities directly under the municipal tax department or its authorized tax department according to the regional distribution of coal resources, coal and other coal is determined, reflecting help to improve coal washing rate, promote clean coal principles utilization and environmental protection.
Washed coal conversion rate has been established, in principle, to keep within a tax year is relatively stable, but in the coal market, the cost of washing and other large changes can be adjusted.
Washed coal conversion rate is calculated as follows:
Formula One: washed coal conversion rate = (average sales of washed coal - part of the average cost of washing - washing part of the average profit) ÷ washed coal average sales × 100%
Washed coal average sales, the average cost of washing segment, washing segment average profit can be determined in accordance with the industry average last year to local estimates.
Formula II: coal washing coal average sales conversion rate = ÷ (washed coal average sales × comprehensive recovery) × 100%
Average sales of coal, washed coal average sales last year in accordance with the local industry average estimates OK.
Comprehensive Recovery = number of washed coal into the former coal washing ÷ number × 100%
Article taxpayers selling taxable coal, pay resource tax in the sales cycle. Taxpayer from the mining of coal washing and processing directly or after continuous production of coke, gas, coal chemicals, electric power and other coal deep-processing products, regarded as sales in the coal or washed coal resource tax to pay part of the transfer.
Article taxpayer coal mining with washing, not accounting to the same administrative region (above the county level), the coal resource tax paid in the coal mined. Taxpayers in the province, autonomous regions and municipalities within the coal mining taxable, the tax payment location needs to be adjusted, the provinces, autonomous regions and municipalities tax authorities decision.
Article VIII of the coal resource tax tax returns in accordance with "the revised resource tax on a tax return notice" (State Administration of Taxation Announcement No. 62, 2014 release) and other relevant tax regulations.
Raw coal washed coal sales price or declare Article IX taxpayer is obviously low and without proper justification, or have deemed taxable sales behavior without coal sales price, the tax authorities shall determine the taxable price in the following order:
(A) by the taxpayer recent period or similar coal washed coal average selling price is determined.
(B) the other taxpayers in recent times or similar coal washed coal average selling price is determined.
(Iii) determined according to the composite assessable price.
Composite assessable price = cost × (1+ cost profit) ÷ (1- resource tax rate)
Formula cost margins provinces, autonomous regions, municipalities, local tax bureaus to determine the average cost of similar coal taxable profit margins.
(Iv) Identify any other reasonable method.
Article 10 Taxpayers associated with business transactions between enterprises shall charge or pay the price, the cost of business transactions between independent enterprises; do not charge or pay the price, the cost of business transactions between independent enterprises, to reduce the payable taxable income, the tax authorities have the right to make reasonable adjustments in accordance with the relevant provisions of the "People's Republic of China on tax collection and management law" and its implementation details.
Article XI taxpayer from the mining or processing of coal washed coal continuous production of coke, gas, coal chemical, power and other products, production for personal use and can not determine the taxable transfer of coal usage, can be taken to the final finished product coal indicators to determine the amount of coal, namely: coal integrated companies can be determined in accordance with an integrated power supply coal consumption per kilowatt-hour indicators; coal Chemical companies can be determined in accordance with the rate of consumption of coal coal chemical indicators of the finished product; continuous production of other coal enterprises finished products which can be taken to determine the coal consumption indicators, or be determined by reference to other reasonable method.
Article 12 A taxpayer will be purchased from post-harvest coal and coal (including coal gangue) were mixed sales should be accurate accounting of purchased coal quantity, unit price and freight, in confirming the corresponding tax basis deductible purchased raw coal purchase amount.
Tax basis = the current mix of coal sales - the current amount used for the purchase of coal purchased mixed sale
Purchased raw coal purchased raw coal purchase amount = purchase amount × Price
The taxpayer from mining coal processing coal washing after continuous and outsourcing washed coal sales were mixed, mutatis mutandis, the relevant provisions of the aforementioned computing resources to pay taxes.
Article 13 Taxpayers with coal from the mining and processing of purchased coal mix washed coal, it should be accurate accounting of purchased coal quantity, unit price and freight, in confirming the tax basis may deduct the purchase of coal purchased corresponding amount.
Tax basis = the current washed coal sales × discount rate - the current amount used for the purchase of shuffling mixed sale of coal purchased
Purchased raw coal purchased raw coal purchase amount = purchase amount × Price
Article XIV taxpayers deduct the current period or purchased coal washed coal purchase amount should be based on value-added tax invoices, general invoices or customs declarations as a deduction certificate.
Article XV coal resource tax reduction or exemption in accordance with the "People's Republic of China resource tax regulations," "State Administration of Taxation on the implementation of the coal resources tax reform notice" (Cai Shui [2014] No. 72) and other relevant policies and administration regulations.
Article XVI provinces, autonomous regions, municipalities directly under the local tax authorities may rely on information technology management, with reference to national or major port thermal coal prices and instant messaging local coal industry authorities under existing coal instant online pricing information, the establishment of local coal resources tax price monitoring system.
Article XVII The tax authorities shall strengthen the risk management of coal resource tax to build the coal resource tax risk management index system, relying on modern information technology, risk management of coal resource tax point of identification, monitoring, early warning, good risk and performance of emergency response assessment.
Article XVIII State tax authorities at all levels should strengthen cooperation, information sharing, provincial tax authorities shall coal VAT invoice information related to coal monthly sales data is passed to the provincial tax authority.
Article XIX provinces, autonomous regions, municipalities and Local Taxation can be combined with local conditions, formulate specific measures for implementation.
Article 20 These shall go into effect August 1, 2015.