SMM: the Resource tax Law of the people's Republic of China was adopted at the 12th meeting of the standing Committee of the 13th National people's Congress on August 26th, 2019, and will enter into force as of September 1, 2020. In order to implement the Resource tax Law, the preferential policies of resource tax that will continue to be implemented after the implementation of the tax Law are hereby announced as follows:

1. The sand, stone and other materials collected by the Qinghai-Tibet Railway Company and its subordinate units for their own use during the operation period shall be exempted from resource tax. The specific operation shall be carried out in accordance with Article 3 of the Circular of the State Administration of Taxation of the Ministry of Finance on tax and other Policy issues during the Operation of the Qinghai-Tibet Railway Company (Finance and Taxation (2007) No. 11).

2. From April 1, 2018 to March 31, 2021, the shale gas resource tax will be reduced by 30%. The specific operation shall be carried out in accordance with the Circular of the State Administration of Taxation of the Ministry of Finance on reducing Resource tax on Shale Gas (Finance and Taxation (2018) No. 26).

3. From January 1, 2019 to December 31, 2021, small-scale VAT taxpayers can reduce resource tax within 50% of the tax range. The specific operation shall be carried out in accordance with the relevant provisions of the Circular of the State Administration of Taxation of the Ministry of Finance on implementing the policy of universal tax relief for small and micro enterprises (Finance and Taxation (2019) No. 13).

4. From December 1, 2014 to August 31, 2023, the resource tax will be reduced by 50% on coal replaced by backfilling mining.

It is hereby announced.

General Administration of Taxation, Ministry of Finance

June 24, 2020

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