FREE: China’s nationwide resource tax starts next month

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

FREE: China’s nationwide resource tax starts next month

China’s State Council has confirmed that the recently trialled resource tax on domestic sales of crude oil and natural gas will be extended nationally from November 1.

The tax, which was trialled in some of the country’s poorest regions, will be extended to re-balance tax revenues between central and local governments.

The finance ministry announced in January that the tax will be rolled out within five years, but this has been brought forward.

That announcement confirmed that the benchmark rate will continue at 5% but may vary depending on the particular resource. The tax will be levied on the value rather than the quantity of the resource.

According to the State Council, a range of tax rates is permitted, rather than a specific rate. For crude oil and natural gas sales, that range is fixed at between 5% and 10%, but it is considered that, in the present high price market, the lower 5% rate will be maintained for the time being.

The tax on crude oil was up to Rmb30 ($4.54) per tonne under the old system and will increase significantly to around RmbB185 per tonne based on the average oil price of $75 per barrel.

more across site & shared bottom lb ros

More from across our site

The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
Taylor Wessing, whose most recent UK revenues were at £283.7m, would become part of a £1.23bn firm post combination
China and a clutch of EU nations have voiced dissent after Estonia shot down the US side-by-side deal; in other news, HMRC has awarded companies contracts to help close the tax gap
An EY survey of almost 2,000 tax leaders also found that only 49% of respondents feel ‘highly prepared’ to manage an anticipated surge of disputes
The international tax, audit and assurance firm recorded a 4% year-on-year increase in overall turnover to hit $11bn
Awards
View the official winners of the 2025 Social Impact EMEA Awards
CIT as a proportion of total tax revenue varied considerably across OECD countries, the report also found, with France at 6% and Ireland at 21.5%
Erdem & Erdem’s tax partner tells ITR about female leader inspirations, keeping ahead of the curve, and what makes tax cool
ITR presents the 50 most influential people in tax from 2025, with world leaders, in-house award winners, activists and others making the cut
Cormann is OECD secretary-general
Gift this article