Shandong: applicable tax rate of coal resources tax 4%

According to the recently issued Interim Measures for the ad valorem calculation and collection of coal resource tax in Shandong Province, the applicable tax rate of coal resource tax in Shandong Province is 4%. The measures shall come into force on December 1, 2019 and shall be valid until November 30, 2020. According to the measures, the coal resource tax shall be levied at the ad valorem rate based on the taxable coal sales. If the taxpayer uses the raw coal mined for its own use in the continuous production of washing coal, it shall not pay resource tax in the process of transferring and using the raw coal; if it uses the raw coal for its own use in other aspects, it shall be deemed as selling the raw coal and shall pay resource tax. If the taxpayer processes the raw coal mined by it into coal washing and cleaning sales, the resource tax shall be calculated and paid by multiplying the sales amount of coal washing and cleaning by the conversion rate as the sales amount of taxable coal. The sales volume of coal washing and separation includes the sales volume of by-products of coal washing and separation. The by-products of coal washing and separation refer to other by-products such as medium coal and slime, excluding gangue. If the taxpayer processes the raw coal mined by it for its own use, it is deemed as the sales of coal washing and separation. The conversion rate of coal washing and separation shall be determined by the finance and taxation departments of each city in combination with the actual situation. In addition, for the coal mined in the period of exhaustion, the resource tax will be reduced by 30%. The term "exhausted coal mine" refers to a coal mine in which the remaining recoverable reserves fall below 20% (including) of the original designed recoverable reserves, or the remaining service life does not exceed 5 years. For the coal replaced by filling mining, the resource tax shall be reduced by 50%. The above tax reduction cannot be applied in combination.