News Center

Mineral Legal Perspective | "Mineral Resources Special Income" will be transferred to the tax department for collection!

Published:

2021-08-15

In order to implement the relevant deployment and requirements of the Party Central Committee and the State Council on the transfer of government non-tax revenue collection and management responsibilities to the taxation department, on May 21, 2021, the Ministry of Finance, the Ministry of Natural Resources, the State Administration of Taxation, and the People's Bank of China jointly issued a document, issued the "Notice on the transfer of four government non-tax revenues from the transfer of state-owned land use rights, special income from mineral resources, sea use funds, and uninhabited island use funds to the tax department for collection" (Finance General [2021] No. 19) decided to transfer the income from the transfer of state-owned land use rights,Special income from mineral resources,The four non-tax revenues of the government, namely, the use of sea area funds and the use of uninhabited islands, are transferred to the tax authorities for collection.

1. what is mineral resources earmarked revenue?

According to the notice on the overall arrangement and use of the special income of mineral resources jointly issued by the Ministry of Finance and the Ministry of land and resources on November 19, 2010 (Caijian [2010] No. 925), the special income of mineral resources refers to the income of mineral resources compensation fee, exploration right and mining right price shared (collected) by the central government. The local share (collection) of mineral resources compensation fees, prospecting rights mining rights royalties and price income may be used in accordance with the provisions of this notice.

Use of special revenue from 2. mineral resources

The special income of mineral resources shall be used as a whole for the following expenditures:

(I) basic public welfare geological mineral resources survey evaluation and management;

(II) strategic mineral resources exploration;

(III) Central Geological Exploration Fund Project;

(IV) risk exploration of foreign mineral resources;

(V) mine geological environment restoration;

(VI) the conservation and comprehensive utilization of mineral resources;

(VII) national geological heritage protection and geological heritage specimen acquisition;

Collection and management of special income from (VIII) mineral resources;

(IX) reward units that undertake projects that have made outstanding contributions to the exploration of mineral deposits funded by the central government;

(X) other geological and mining-related expenditures jointly determined by the Ministry of Finance and the Ministry of Land and Resources.

The budget management of the above expenditure scope shall be implemented in accordance with the respective existing special fund management methods.

3. first pilot and then push

According to the provisions of notice No. 19 of Caizong [2021], starting from July 1, 2021, Hebei, Inner Mongolia, Shanghai, Zhejiang, Anhui, Qingdao and Yunnan provinces (autonomous regions, municipalities directly under the Central Government and cities separately listed on the State plan) will be selected as provinces (autonomous regions and cities) to carry out pilot transfer of collection and management responsibilities, explore and improve the collection process and division of responsibilities, so as to accumulate experience for comprehensively promoting the transfer work. The pilot areas that have not yet carried out the transfer of collection and management should actively prepare for the collection and transfer of four government non-tax revenues, and fully implement the transfer of collection and management from January 1, 2022.

Is the Tax Collection and Administration Law applicable to the special income of 4. mineral resources?

According to Article 1 of the Law on the Administration of Tax Collection of the the People's Republic of China of China, "this Law is formulated in order to strengthen the administration of tax collection, standardize the collection and payment of taxes, safeguard the tax revenue of the State, protect the legitimate rights and interests of taxpayers, and promote economic and social development". Article 2 stipulates: "This Law shall apply to the collection and administration of all kinds of taxes collected by the tax authorities in accordance with the law". It can be seen that the premise of the application of the Law on the Administration of Tax Collection is "tax". The financial comprehensive [2021] No. 19 is only the "mineral resources special income" transferred to the tax department for collection, but belongs to the "non-tax income", so the tax authorities can not apply the "tax collection and management law" for collection.

Non-tax Collection Process of 5. Mineral Resources Special Income

1, prospecting rights mining rights transfer proceeds collection process (table)