According to the documents jointly issued by the Ministry of Finance and the State Administration of Taxation, starting from December 1, the resource tax for crude oil and natural gas in our region has been changed from "quantity-based assessment" to "ad valorem-based assessment," and the tax rate is 5%. At this point, the new reform of the resource tax reform began in 12 provinces, autonomous regions, and municipalities including our district.
According to the provisions of the document, the new policy on resource taxation applies to units and individuals that extract crude oil and natural gas in the western region (hereinafter referred to as the taxpayer), and the tax payable amount = sales amount x tax rate. The crude oil and natural gas mined by the taxpayer are used for the continuous production of crude oil and natural gas, and they are not subject to the resource tax; since they are used in other areas, they are deemed to be sales tax resources. The Chinese and foreign companies that jointly exploited onshore oil and gas will enter into a new contract signed after December 1st, and will levy a resource tax at a 5% tax rate, and will no longer pay royalties. The contract signed before December 1 will continue to pay royalties.
According to the provisions of the document, the new policy on resource taxation applies to units and individuals that extract crude oil and natural gas in the western region (hereinafter referred to as the taxpayer), and the tax payable amount = sales amount x tax rate. The crude oil and natural gas mined by the taxpayer are used for the continuous production of crude oil and natural gas, and they are not subject to the resource tax; since they are used in other areas, they are deemed to be sales tax resources. The Chinese and foreign companies that jointly exploited onshore oil and gas will enter into a new contract signed after December 1st, and will levy a resource tax at a 5% tax rate, and will no longer pay royalties. The contract signed before December 1 will continue to pay royalties.