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 president’s tariff regime has already caused misery for taxpayers. Losing at the Supreme Court would mean it was all for nothing
The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Identifying who will bear the costs and concerns around confidentiality are issues yet to be resolved, advisers say
As multinationals embed tax technology into their TP functions, a new breed of systems – built on multi-model databases – is quietly transforming intercompany pricing logic
The president described it as ‘one of the most important cases in the history of our country’; in other news, Portugal established a VAT group regime
Clients are facing increased TP audit scrutiny in Hungary. DLA Piper Hungary is therefore using AI and advanced analytics to augment its advice, the firm’s head of TP says
Simpson Thacher & Bartlett and MinterEllisonRuddWatts were among the firms that advised on the deal
AI will mean fewer entry-level roles in tax but also the emergence of new jobs, according to tax expert Isabella Barreto
As World Tax unveils its much-anticipated rankings for 2026, we focus on standout performances by PwC, KPMG and Deloitte across the Asia-Pacific region
The partnership model was looking antiquated even before the UK chancellor’s expected tax raid on LLPs was revealed. An additional tax burden may finally kill it off
Gift this article