The legal perspective of minerals. The new policy of mining rights transfer proceeds.
Published:
2023-04-15
On April 14, the Ministry of Finance, the Ministry of Natural Resources, and the State Administration of Taxation jointly issued the "Measures for the Collection of Proceeds from the Transfer of Mining Rights" to adjust the method of collecting proceeds from the transfer of mining rights. The Measures shall come into force on May 1, 2023, and the Interim Measures for the Administration of the Collection of Proceeds from the Transfer of Mining Rights (Caizong [2017] No. 35) and the Notice of the Ministry of Natural Resources of the Ministry of Finance on Further Clarifying Issues Related to the Collection and Administration of Proceeds from the Transfer of Mining Rights (Caizong [2019] No. 11) shall be repealed at the same time. The Measures for the Collection of Proceeds from the Transfer of Mining Rights are detailed, adjusted and supplemented in the following areas: 1. Collection management system On the basis of maintaining the stability of the overall share ratio between the central and local governments, the provisions on the share of the proceeds from the transfer of mining rights in different situations shall be refined and clarified. Link up with the reform of the transfer of non-tax revenue collection and management responsibilities, and adjust and clarify the collection and management responsibilities between departments. According to the establishment of mining rights, it is clearly stipulated how to determine the expropriation land in complex situations such as cross-provincial, cross-city and county mining rights, as well as oil and gas mining rights. In the collection and management system, it promotes the collection and management policy to keep pace with the times. 2. Method of collection of proceeds from the sale On the one hand, it is clear how the rate of return is levied. Research and formulation of the "Mining Catalog (Trial)" (hereinafter referred to as the "Mining Catalog") in the form of mining rights transfer yield. For the 144 minerals in the Mineral Catalogue (accounting for 83.2 per cent of the statutory 173 minerals), the proceeds from the transfer of mining rights are paid in two parts: "levy by amount" and "levy by rate year by year. Among them, the part of "levy by amount" is determined according to the result of competition in the transfer link, and the difference in owner's equity due to different resource endowments can be reflected in the transfer link. The part of "year-on-year rate collection" shall be paid by the mining right holder on an annual basis according to a certain proportion of the sales revenue (I. e. the rate of transfer) after the mining and sales. On the other hand, the proportion of down payment levied in the form of amount has been reduced, the period of installment payment has been extended to the greatest extent, and the relevant provisions of the market benchmark price have been refined. The optimization and adjustment of the collection method of transfer proceeds is not only conducive to maintaining the market competition mechanism, ensuring the safety and effective use of resources; it also respects the objective laws of mining exploration and development, focuses on solving the problem of the fast pace of collection, and balances the time distribution of the financial burden of mining rights holders. It reduces the cost of enterprises, dispels the concerns of some geological exploration units, encourages speeding up the transfer of mining and production, and releases production capacity as soon as possible. In the way of collecting the proceeds of the sale, the payment pressure on the enterprise is reduced. 3. Contributions and refunds The transfer mechanism of fee source information between natural resources and tax departments is clarified. Provisions have been made for the truthful declaration and payment responsibilities of mining rights holders to ensure that the collection mechanism is implemented. Extend the time limit for mineral rights owners to 30 days from the receipt of payment notices to facilitate their fund-raising. The division of responsibilities and procedures for returning the warehouse have been refined, and it is clear that the local supervision bureaus of the Ministry of Finance are responsible for the return of the central share of the proceeds from the transfer of mining rights. In terms of contributions and refunds, management and service effectiveness have been improved. 4. Convergence of old and new policies Distinguish the three time periods before July 1, 2017, from July 1, 2017 to the date of implementation of the Measures, and after the date of implementation of the Measures, combined with whether the mining rights involve state-funded proven mineral areas and whether the minerals are in the "Minerals" In the Catalogue, detailed regulations have been made respectively. At the same time, it is emphasized that the signed contract or installment payment approval will not be adjusted, and the mining right may continue to pay the remaining part in accordance with the contract agreement or approval. For some enterprises in arrears of mining rights transfer proceeds, one-time payment pressure is greater, allowed to pay in installments. In the convergence of the old and new policies, the classification clarifies the policy of collecting the proceeds of the transfer of the new and old mining rights. The Ministry of Natural Resources stated that the new expropriation method realizes the flexible payment of mining rights transfer income by enterprises, effectively reduces the financial pressure of enterprises, and also ensures that the rights and interests of national resource assets are not lost, which is conducive to the rational adjustment of mineral resource income and promotes the sustainable development of mining.
On April 14, the Ministry of Finance, the Ministry of Natural Resources, and the State Administration of Taxation jointly issued the "Measures for the Collection of Proceeds from the Transfer of Mining Rights" to adjust the method of collecting proceeds from the transfer of mining rights. The Measures shall come into force on May 1, 2023, and the Interim Measures for the Administration of the Collection of Proceeds from the Transfer of Mining Rights (Caizong [2017] No. 35) and the Notice of the Ministry of Natural Resources of the Ministry of Finance on Further Clarifying Issues Related to the Collection and Administration of Proceeds from the Transfer of Mining Rights (Caizong [2019] No. 11) shall be repealed at the same time.
The Measures for the Collection of Proceeds from the Transfer of Mining Rights are detailed, adjusted and supplemented in the following areas:
1. Collection management system
On the basis of maintaining the stability of the overall share ratio between the central and local governments, the provisions on the share of the proceeds from the transfer of mining rights in different situations shall be refined and clarified. Link up with the reform of the transfer of non-tax revenue collection and management responsibilities, and adjust and clarify the collection and management responsibilities between departments. According to the establishment of mining rights, it is clearly stipulated how to determine the expropriation land in complex situations such as cross-provincial, cross-city and county mining rights, as well as oil and gas mining rights.
In the collection and management system, it promotes the collection and management policy to keep pace with the times.
2. Method of collection of proceeds from the sale
On the one hand, it is clear how the rate of return is levied. Research and formulation of the "Mining Catalog (Trial)" (hereinafter referred to as the "Mining Catalog") in the form of mining rights transfer yield. For the 144 minerals in the Mineral Catalogue (accounting for 83.2 per cent of the statutory 173 minerals), the proceeds from the transfer of mining rights are paid in two parts: "levy by amount" and "levy by rate year by year. Among them, the part of "levy by amount" is determined according to the result of competition in the transfer link, and the difference in owner's equity due to different resource endowments can be reflected in the transfer link. The part of "year-on-year rate collection" shall be paid by the mining right holder on an annual basis according to a certain proportion of the sales revenue (I. e. the rate of transfer) after the mining and sales. On the other hand, the proportion of down payment levied in the form of amount has been reduced, the period of installment payment has been extended to the greatest extent, and the relevant provisions of the market benchmark price have been refined. The optimization and adjustment of the collection method of transfer proceeds is not only conducive to maintaining the market competition mechanism, ensuring the safety and effective use of resources; it also respects the objective laws of mining exploration and development, focuses on solving the problem of the fast pace of collection, and balances the time distribution of the financial burden of mining rights holders. It reduces the cost of enterprises, dispels the concerns of some geological exploration units, encourages speeding up the transfer of mining and production, and releases production capacity as soon as possible.
In the way of collecting the proceeds of the sale, the payment pressure on the enterprise is reduced.
3. Contributions and refunds
The transfer mechanism of fee source information between natural resources and tax departments is clarified. Provisions have been made for the truthful declaration and payment responsibilities of mining rights holders to ensure that the collection mechanism is implemented. Extend the time limit for mineral rights owners to 30 days from the receipt of payment notices to facilitate their fund-raising. The division of responsibilities and procedures for returning the warehouse have been refined, and it is clear that the local supervision bureaus of the Ministry of Finance are responsible for the return of the central share of the proceeds from the transfer of mining rights.
In terms of contributions and refunds, management and service effectiveness have been improved.
4. Convergence of old and new policies
Distinguish the three time periods before July 1, 2017, from July 1, 2017 to the date of implementation of the Measures, and after the date of implementation of the Measures, combined with whether the mining rights involve state-funded proven mineral areas and whether the minerals are in the "Minerals" In the Catalogue, detailed regulations have been made respectively. At the same time, it is emphasized that the signed contract or installment payment approval will not be adjusted, and the mining right may continue to pay the remaining part in accordance with the contract agreement or approval. For some enterprises in arrears of mining rights transfer proceeds, one-time payment pressure is greater, allowed to pay in installments.
In the convergence of the old and new policies, the classification clarifies the policy of collecting the proceeds of the transfer of the new and old mining rights.
The Ministry of Natural Resources stated that the new expropriation method realizes the flexible payment of mining rights transfer income by enterprises, effectively reduces the financial pressure of enterprises, and also ensures that the rights and interests of national resource assets are not lost, which is conducive to the rational adjustment of mineral resource income and promotes the sustainable development of mining.
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